The Central Bank of Congo (BCC) has decided to increase its key rate. This decision was taken at the end of the ordinary meeting chaired by the monetary policy committee.
According to the press release from the BCC, the key rate of this financial institution goes from 8.25% to 9%.
« In particular, the CPM decided to further tighten monetary policy by raising the BCC’s key rate from 8.25 to 9%.“, we read in the press release.
The BCC estimated that it will remain vigilant and follow up on findings. This is due to bank liquidity factors and developments in the foreign exchange market.
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The BCC wants to preserve the stability of prices and the macroeconomic framework
The BCC also notes that the coordination of budgetary and monetary policy actions must be strengthened. This, by implementing all the other measures necessary to preserve price stability and the macroeconomic framework in general.
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What you need to know about the key rate
It is a conventional and legitimate means of monetary policy used by central banks. These banks use it to set the interest rate for the loans it makes to commercial banks that need it. It also influences the interest rate at which commercial banks also in turn lend to their customers, including households and businesses.
Note that the CPM is the decision-making body of the BCC in terms of monetary policy, management of reserves and exchange rates, growth, inflation. Its missions, attributions and operating rules are specified in the Bank’s statutes and in its rules of procedure.
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Emongo Gerome