Across Africa, central banks continue to curb inflation without choking off economic growth.
As a result, monetary policy rates (MPRs) remain elevated across much of the continent, underscoring how costly borrowing still is for households and businesses.
From Zimbabwe’s exceptionally high 35% benchmark rate to The Gambia’s comparatively lower 16%, borrowing costs reflect differing degrees of inflationary pressure, currency fragility, fiscal stress, and structural constraints.
While several central banks have begun cautiously easing policy as inflation moderates, financial conditions remain tight by both historical and global standards.
Taken together, these policy stances highlight Africa’s uneven and fragile path toward price stability and more affordable credit.
Below are the African countries with the highest monetary policy rates as of December 2025.
- Previous: 17.00% | Last MPC Meeting: December 2025
The Gambia rounds out the list after cutting its policy rate to 16% at its December 2025 MPC meeting. The decision followed continued moderation in headline inflation, which eased to about 7% in October 2025, its lowest level since 2020, alongside relatively strong external reserves by regional standards.
Lower import costs, improved domestic food supply, and sustained monetary discipline helped anchor inflation expectations. While borrowing costs remain high for a small open economy, the policy shift signals growing confidence in inflation containment and exchange-rate stability.
