Congo Central Bank Lowers Benchmark Rate to 6% From 7.5%

Democratic Republic of Congo’s central bank lowered its benchmark interest rate by 1.5 percentage points to 6 percent, citing macro-economic stability and low inflation as the reasons for the cut.

Congo’s economy should expand about 7.2 percent and inflation should be below the targeted 9.9 percent this year, the Monetary Policy Committee said in a Sept. 25 statement published on the bank’s website today. Annualized inflation was 5.95 percent as of Sept. 23, the bank said.

“The three main markets, namely goods and services, foreign exchange, and monetary, are characterized by a remarkable stability,” the bank said.

Congo posted 6.9 percent growth and 15.23 percent inflation last year, the bank said in February. Increased commodity prices and construction spurred the economy last year, it said. The Central African country produces about 4 percent of the world’s copper, has around half the world’s cobalt reserves, and has deposits of gold, diamonds and tin.

To contact the reporter on this story: Michael J. Kavanagh in Kinshasa at mkavanagh9@bloomberg.net

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net

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