“The key interest rate and the rates for the permanent lending and deposit facilities will remain at 2.5%, 2.75%, and 2.25%, respectively,” the statement said.
The BCV explained the decision by forecasting that the economic performance of the archipelago will slow from 7.3% in 2024 to 5.5% this year, “decelerating to 4.8% in 2026, a value close to the potential growth of the Cape Verdean economy.”
Regarding inflation, the annual average rate was set at 2.1% in August, “largely reflecting price increases in international markets.”
The year is expected to end with an annual average inflation rate of 2.4%, with a reduction to 1.7% anticipated in 2026, it added.
The external context “remained constrained by trade tensions and global uncertainties, with Cape Verde’s main partner economies registering moderate growth.”
On the other hand, the archipelago’s net international reserves “are expected to increase in 2025, reaching 955 million euros, ensuring about eight months of imports” of all the products the archipelago needs.
This figure represents a new record after the BCV adjusted monetary policy, aligning interest rates with European levels to prevent the outflow of capital abroad.
Given this context, “the Bank of Cape Verde considers maintaining the reference interest rates at current levels as appropriate,” it concluded.
The next meeting of the Monetary Policy Committee is scheduled for December 9.
LFO // MLL
Lusa/End
