(Togo First) - The Central Bank of West African States (BCEAO) has cut its key interest rates by 0.25 percentage points to support economic recovery across the West African Economic and Monetary Union (WAEMU), which includes Togo and seven other countries that share the CFA franc.
The decision was announced by the BCEAO Monetary Policy Committee on Wednesday, March 4, 2026, in Dakar. Effective March 16, the main refinancing rate will fall from 3.25% to 3.00%, while the marginal lending facility rate will decline from 5.25% to 5.00%.
The move comes as deflation persists in the currency union. Inflation stood at -0.8% in the fourth quarter of 2025, after reaching -1.4% the previous quarter. Over the full year, consumer prices were broadly unchanged, largely due to strong local harvests and lower prices for imported food products. The central bank expects inflation to rise gradually to 1.4% in 2026.
Economic activity in the region remains resilient. WAEMU GDP grew by 6.7% in 2025, up from 6.2% in 2024, supported by the agricultural, extractive and manufacturing sectors.
Growth is projected at 6.4% in 2026. At the same time, bank lending to the economy increased by 5.6%, indicating a moderate improvement in financing conditions.
Within the union, Togo continues to post solid growth, with real GDP estimated to have expanded by 6.3% in the third quarter of 2025. The expansion was driven mainly by the secondary sector, where output rose by 9.1%.
Extractive industries (+16.6%) and construction (+22.9%) were the main drivers of this momentum, supported by investments in logistics infrastructure and the development of industrial zones.
Price pressures in Lomé remain subdued and in line with the union’s objectives. Year-on-year inflation stood at 0.0% in January 2026, continuing a downward trend that began in 2024.
Despite improving foreign trade, supported by exports of oil and gold, the central bank remains cautious. Governor Jean-Claude Kassi Brou said the institution would stay vigilant in the face of global geopolitical risks and volatility in agricultural commodity prices in order to safeguard the region’s financial stability.
Ayi Renaud Dossavi