Policy tightens but real rates profoundly negative

The Central Bank of West African States (BCEAO) has increased its lending rate from 4.00% to 4.25% and the bidding window rate from 2.00% to 2.25%, effective 16 June. It joins a regional trend. Also in that, while real policy rates for most countries are still negative, business conditions are difficult. It is an environment in which reforms that can facilitate investment, business and employment without undermining domestic revenue generation will be key to economic growth and the risk environment.