BEAC: a pause before another rate cut?
After loosening monetary policy in June, the Bank of Central African States chose to change nothing at the end of September. Its caution leaves businesses waiting for the last Monetary Policy Committee meeting of the year.
Translated from French. Lire en français
Easing began in June
On 29 June 2026 in Yaoundé, the BEAC's Monetary Policy Committee (MPC) took a decision the business community had been waiting for: it cut its main policy rate, the tender interest rate (TIAO), from 4.75% to 4.50%. The marginal lending facility rate fell from 6.25% to 5.75%. At the same time, the central bank reduced the reserves banks must hold with it: 6.50% on demand deposits (down from 7%) and 4% on term deposits (down from 4.5%).
In practice, these measures free up money in the banking system. Banks can refinance more cheaply and have more resources to lend to households and businesses.
September: no change
Three months later, on 28 September, the MPC opted for the status quo. The TIAO stays at 4.50%, the marginal lending facility at 5.75% and the deposit facility at 0%. The BEAC wants to measure the effect of the June decisions before going further.
The context calls for caution. BEAC staff have revised the zone's growth forecast to 3% for 2026, down from 3.7% in 2025. Inflation remains contained at around 2.2%, below the community ceiling of 3%. On the external side, foreign exchange reserves should cover about 4.5 months of imports, and the external coverage of the currency is expected to rise to 72.4%.
What it means for Chadian businesses
For a business owner in N'Djamena, the question is simple: will credit get cheaper? Policy rate cuts take time to feed through to bank lending conditions. They also depend on competition between banks and on the risk each borrower is perceived to carry.
The next MPC will have to choose between two options: continue easing to support slowing growth, or wait for foreign exchange reserves to strengthen further. Low inflation argues for the first option, fragile reserves for the second.
Key figures
- TIAO: 4.50% (since 29 June 2026)
- Marginal lending facility: 5.75%
- Expected CEMAC growth in 2026: 3%
- Foreign exchange reserves: about 4.5 months of imports
- Published on:
- Wednesday, 28 October 2026
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