Sierra Leone Becomes First in Africa to Hike Rate This Year

Sierra Leone’s central bank became the first in Africa and second globally after Israel to raise interest rates this year. A combination of factors, ranging from higher commodity costs to uncertainty around the Covid-19 pandemic, are keeping price pressures elevated in the West African nation. The Bank of Sierra Leone’s monetary policy committee hiked its key rate for a fifth straight meeting to 18.25% from 17%, bringing cumulative increases in just over a year to 425 basis points.

(Bloomberg) — Sierra Leone’s central bank became the first in Africa and second globally after Israel to raise interest rates this year. A combination of factors, ranging from higher commodity costs to uncertainty around the Covid-19 pandemic, are keeping price pressures elevated in the West African nation. The Bank of Sierra Leone’s monetary policy committee hiked its key rate for a fifth straight meeting to 18.25% from 17%, bringing cumulative increases in just over a year to 425 basis points.

–With assistance from Rene Vollgraaff.

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