According to him, on the outlook, the disinflation part is expected to progress, with headline inflation projected to decline closer to the central bank's medium-term target by end of 2026.
He explained that the global economic growth continues to register a remarkable resilience amid significant headwinds.
"Latest projections indicate global growth will average above 3% in 2026 and 2027, to be supported by fiscal stimulus, easing financial conditions, and strong private sector investment," he added.
He further stated that this is expected to have a positive spill over impact on the Gambian economy, with tourism, private remittance inflows, and trade expected to benefit the most.
He mentioned that global disinflation continues to progress, supported by subdued commodity prices. Both energy and oil prices are focused to further moderate, owing to tepid global demand and softer supply conditions.
In addition, he said, international food prices are generally expected to remain subdued, with rice prices focused to decline further in 2026.
He noted that the outlook remains profound, easing international energy and food prices. Coupled with improved domestic policy measures, it will likely keep domestic disinflation part on track in the near term.
On the domestic front, he said the Gambian economic performance was solid in 2025, and the outlook is promising.
This is to be supported by strong remittance inflows, which finances household consumptions and investment demand, a rebound in tourism and a targeted public investment activity.
He indicated that the domestic foreign exchange market is expected to remain stable with improved supply conditions. This, in addition to the strong international foreign reserve buffer, “is poised to support the dalasi” in the near to medium term.
According to Governor Saidy, in view of the above, the Monetary Policy Committee (MPC) of the Central Bank decided as follows: The Monetary Policy Rate (MPR) is reduced to 14%. The required reserve ratio of commercial banks is maintained at 13%.
He explained that the interest rate on the Standing Deposit Facility is maintained at 5%. The interest rate on the Standing Lending Facility will decline to 15%, equivalent to MPR plus one percentage point.
The CBG governor also stated that the Monetary Policy Committee maintains its commitment to data-driven policy decisions and stands ready to respond promptly, should evolving economic conditions call for action.
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