The Bank of Sierra Leone (BSL) has announced significant cuts to its key interest rates in a bid to boost the national economy amid easing inflationary pressures. Following an emergency Monetary Policy Committee (MPC) meeting held on July 24, the Bank’s Board of Directors approved on July 28 a 2 percentage point reduction in the Monetary Policy Rate (MPR), bringing it down to 21.75%.
In addition, the Standing Lending Facility Rate (SLFR) and the Standing Deposit Facility Rate (SDFR) were cut by 3 percentage points each, to 23.75% and 14.25% respectively. These adjustments took effect on July 29, 2025.
The decision follows signs of a softening inflation rate, with headline inflation declining to 7.10% in June from 7.55% in May. The MPC also noted a sharp drop in the 364-day Treasury Bill rate from 20.40% in mid-June to 15.17% by mid-July, reflecting ongoing government fiscal consolidation efforts.
Despite a slight slowdown in economic activity during the second quarter of 2025 and a marginal decline in private sector credit—from 3.72% of GDP in March to 3.69% in May—the Leone’s exchange rate against the US Dollar has remained relatively stable. This stability is attributed to coordinated monetary and fiscal policies and improved market sentiment.
Dr. Ibrahim L. Stevens, Governor of the Bank of Sierra Leone, underscored the central bank’s commitment to maintaining price stability while fostering private sector credit growth and investment. “The MPC recognizes improvements in the domestic macroeconomic environment and is prepared to ease monetary policy further if necessary, to support economic growth without compromising price stability,” he stated.
The Bank’s next MPC meeting is scheduled for September 25, 2025, where policymakers will review economic conditions and adjust policies as needed.
Summary of New Interest Rates (effective July 29, 2025):
- Monetary Policy Rate (MPR): 21.75%
- Standing Lending Facility Rate (SLFR): 23.75%
- Standing Deposit Facility Rate (SDFR): 14.25%
The Bank of Sierra Leone continues to monitor evolving global and domestic conditions to safeguard economic stability and growth.
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