BEAC Cuts Policy Rates to Support Lending in CEMAC Nations

The Bank of the Central African States (BEAC) lowered its main policy rates and reserve‑requirement ratios in a meeting held on 29 June in Yaoundé. The interest rate on tender operations was cut from 4.75 % to 4.50 %, and the marginal lending facility rate fell from 6.25 % to 5.75 %. Reserve requirements for demand deposits were reduced to 6.5 % from 7.0 % and for term deposits to 4.0 % from 4.5 %.

The easing aims to stimulate credit growth and business investment across the six‑member CEMAC zone – Cameroon, Central African Republic, Republic of the Congo, Gabon, Equatorial Guinea and Chad – as inflation remains contained at an expected 2.4 % in 2026 and foreign‑exchange reserves improve. BEAC projects fiscal deficits narrowing to 1.9 % of GDP and external coverage rising to 70.7 % by year‑end. The IMF has warned that the region’s recovery remains fragile and called for corrective measures, prompting CEMAC states to negotiate new IMF‑supported programmes.

The rate cuts are expected to lower borrowing costs for governments and businesses, potentially boosting the region’s modest growth forecast of 3.2 % in 2026, slightly below the 3.4 % recorded in 2025.