Maintaining interest rate stability

The permanent facility rates have been increased by the Monetary Committee of the Banky Foiben’i Madagasikara (BFM).

The deposit facility rate (FDD), which was 9 % during the last review on May 6, has been raised to 9.5 %. Meanwhile, the marginal lending facility rate (FPM) has increased from 11 % to 11.5 %. For monetary transactions, banks that deposit their excess liquidity with the BFM will be remunerated at 9.5 %. On the other hand, to meet their liquidity needs, the Central Bank will charge an interest rate of 11.5 % on their loans.

These adjustments in the monetary market aim to maintain short-term interest rate stability. According to the BFM, consumer prices rose by 7.2 % in June 2024, compared to 7.4 % in March and 7.3 % in April and May 2024. Since the beginning of the year, these rates have remained relatively high, with only slight fluctuations. Rice, one of the main components of the household consumption basket, saw an increase of 5.0 % and contributed 13.1 % to the overall variation.

Energy tariffs experienced an 8.0 % increase during the reviewed period. Fuel prices, however, have not yet been adjusted and have remained stable since July 2022.