Facing a fall in growth rate, BEAC lowers its key rate

The Bank of Central African States has backed its growth forecast for the Cemac zone in 2015 from 4.2% to 2.8%. A result of a sluggish oil market condition and insecurity around Lake Chad and Central African Republic.

The Bank of Central African States (BEAC) took note of the decrease of activity in the region and adjusted its key rate by 50 basis points.

A year to the day after the last drop of 30 basis points, the rate of interest of public tenders (TIAO) moved from 2.95 to 2.45 percent at the end of the monetary policy Committee (CPM) which was held on July 9.

"This decision, which will boost activities, is related to the slower net growth justified by the decline in oil production, the fall of the price of a barrel as well as insecurity in the area. In addition, the lowering of inflation rate," says the Governor, Lucas Abaga Nchama.