Despite the downward inflation trend, the CBL Monetary Policy Committee (MPC) decided to maintain the monetary policy rate at 25.0% for the fourth time with the aim of managing Liberian dollar banknotes outside banks, counteracting inflation expectations and stimulating interest rate transmission in the financial sector. Accordingly, global economic growth for 2021 is projected at 5.5%, on account of anticipated containment of COVID-19 and other policy measures. Monetary policy rates in advanced economies were relatively stable and remained broadly unchanged within most of the countries in the West African Monetary Zone (WAMZ) in the fourth quarter of 2020. In the fourth quarter, the average outstanding issuance of CBL Bills increased by 3.72% in comparison to the previous quarter. Similarly, in the fourth quarter of 2020, the deficit in Liberia’s trade balance improved from 5.6% to 4.6% of GDP, while inward worker remittances increased to US$65.4 million.
