The Central Bank of Mauritania has increased its main interest rate to 7.25%, and raised the mandatory reserve requirement for commercial banks from 8% to 15%. This is the second monetary tightening measure taken by the bank in less than four months, aimed at mitigating the effects of inflation. The decision was made by the bank's governor, as reported by the independent news agency "Al-Akhbar" and the website "Mauritania 13" on Saturday.
The measures are part of the central bank's monetary policy to limit the impact of inflation, although updated figures on the current inflation rate have not been released. The decision was made during a meeting of the Monetary Policy Council on October 28, 2026. Raising the mandatory reserve requirement means that commercial banks are required to freeze a larger portion of deposits in their accounts with the central bank, reducing the liquidity available for lending.
Increasing the interest rate makes borrowing more expensive for banks, and subsequently for companies and individuals. This move follows a previous increase in the main interest rate by a quarter of a percentage point to 6.75% in mid-July 2026, as reported by the "Sahara Media" website. The central bank also raised the lending rate to 7% at that time to contain inflationary pressures and maintain price stability.
The tightening of monetary policy comes as the Mauritanian government has recently adopted the 2027 budget, and amid complaints from Mauritanian households about the high prices of basic goods. The central bank has not yet released a detailed statement explaining the justification for the size of the new increase.
The decision is expected to have a significant impact on the Mauritanian economy, particularly on borrowing costs and liquidity in the financial system. The central bank's move aims to curb inflation, which has been a concern for the country.
The Mauritanian economy has been facing challenges, including high inflation and a significant budget deficit. The government's efforts to adopt a new budget and the central bank's monetary policy measures are aimed at stabilizing the economy and maintaining financial stability.
The central bank's decision to raise the interest rate and increase the mandatory reserve requirement is a clear indication of its commitment to fighting inflation and maintaining economic stability. The move is expected to have a positive impact on the economy in the long term.
Key points
- The Central Bank of Mauritania raises interest rate to 7.25% to combat inflation.
- The bank also increases mandatory reserve requirement for commercial banks from 8% to 15%.
- The move aims to mitigate the effects of inflation and maintain economic stability.
