West African Central Bank Holds Main Rate at 3% as Inflation Rises

West African monetary union central bank BCEAO kept its main refinancing rate at 3.00% after its Monetary Policy Committee met in Dakar on September 9. It also retained the marginal lending rate at 5.00% and the reserve requirement at 3.00%, levels in force since March 16. Union inflation rose to 1.7% year over year in August from 1.2% in July, while second-quarter growth was estimated at 6.0%. The bank forecasts average inflation of 1.0% and economic growth of 6.1% in 2026, with inflation risks tied mainly to Middle East uncertainty and energy prices.