BEAC: Maintains Key Rate at 4.5%, Revises CEMAC Growth Forecast to 3% for 2026

• The Bank of Central African States (BEAC) kept its main policy rate at 4.5% on September 28.
• The BEAC also maintained the marginal lending facility rate at 5.75% and the deposit facility rate at 0%.
• The central bank cut its 2026 CEMAC economic growth forecast to 3%, down from 3.2% previously and 3.7% in 2025.
• Current year inflation is projected to average 2.2%, slightly up from 2% in 2025 but still below the 3% regional ceiling.
• These monetary policy decisions were made at a committee meeting in Yaounde, chaired by Governor Yvon Sana Bangui.

The central bank now anticipates CEMAC's economy to expand by 3% in 2026.

On September 28, the Bank of Central African States (BEAC) announced its latest monetary policy adjustments, notably keeping its primary policy rate, often referred to as the BEAC key rate, stable at 4.5%. This decision emerged from the Monetary Policy Committee's third ordinary session of the year, convened in Yaounde and presided over by Governor Yvon Sana Bangui. The central bank's move signals a continued commitment to its current monetary stance, maintaining stability across several key financial instruments.

Beyond the main policy rate, other critical financial levers were also held constant. The BEAC marginal lending facility rate remained at 5.75%, while the deposit facility rate was kept at 0%. Furthermore, the compulsory reserve ratios for financial institutions saw no alteration, staying at 6.5% for sight liabilities and 4% for term liabilities. These rates have been consistently applied since the committee's June meeting, indicating a period of sustained policy stability following earlier adjustments.

It was during the June session that the central bank last modified its tender rate, reducing it from 4.75% to the current 4.5%. Concurrently, the marginal lending facility rate was also adjusted downwards from 6.25% to its present level of 5.75%. The continuity of these rates reflects a deliberate approach to Central African Economic and Monetary Community monetary policy, aiming for predictable financial conditions within the region.

Alongside its interest rate decisions, the BEAC also presented a revised economic outlook for the Central African Economic and Monetary Community (CEMAC) region, projecting a slower growth trajectory for the coming years. The central bank now anticipates CEMAC's economy to expand by 3% in 2026. This updated CEMAC economic growth forecast for 2026 represents a downward revision from earlier projections.

Specifically, the new 3% forecast for 2026 is lower than the 3.2% growth rate that was predicted in June. It also falls short of the 3.7% growth rate actually recorded across the CEMAC region in 2025. This adjustment suggests a more cautious outlook regarding the region's economic momentum in the medium term, which could influence investment and business planning.

In terms of price stability, the BEAC's CEMAC inflation projection for the current year indicates an average rate of 2.2%. While this figure is a slight increase from the 2% inflation observed in 2025, it remains comfortably below the region's established inflation ceiling of 3%. This suggests that despite the moderated growth expectations, inflationary pressures are currently contained within the central bank's target range.

The decision by the Bank of Central African States to maintain the BEAC key rate at 4.5% signals a period of monetary policy stability, providing a consistent financial environment for businesses and investors within the CEMAC region. This steady approach to the Bank of Central African States policy rate, coupled with unchanged compulsory reserve ratios and other facility rates, aims to foster predictability in lending and borrowing conditions. However, this stability in interest rates is juxtaposed with a less optimistic economic growth forecast.

The downward revision of the CEMAC growth forecast 2026 to 3% from previous estimates is a significant development. This adjustment implies that while the cost of borrowing may remain stable due to the unchanged BEAC marginal lending facility rate, the overall economic expansion within the Central African Economic and Monetary Community is expected to be more subdued than previously anticipated. This could impact revenue projections and investment returns for entities operating in the region.

Despite the moderated growth outlook, the contained inflation projection, which remains below the 3% regional ceiling, offers a measure of reassurance regarding purchasing power and economic stability. The BEAC's careful balancing act of maintaining stable monetary policy instruments while adjusting growth expectations reflects an adaptive approach to the evolving economic landscape of the CEMAC region.

Lawyers advising clients on corporate finance, project development, or commercial transactions within the CEMAC region should note the stable interest rate environment but also the revised downward economic growth forecast, which may influence financing costs, investment viability, and contractual risk assessments for businesses operating in the region.

Source: Original reporting via {source}