Across Africa, central banks continue to balance the competing pressures of bringing inflation under control while still supporting fragile economic growth. As a result, monetary policy rates (MPRs) remain elevated across several economies, keeping borrowing costs high for households, businesses, and governments.
From Zimbabwe’s exceptionally high 35.00% benchmark rate to Ghana and The Gambia at 14.00%, Africa’s interest rate landscape reflects wide disparities in inflation trends, currency stability, fiscal positions, and exposure to external shocks.
Nigeria currently has the second-highest Monetary Policy Rate (MPR) in Africa among major economies.
While a few central banks on the top 10 list have begun cautiously easing policy as inflation gradually moderates, others remain firmly on hold, underscoring that the fight against inflation is still ongoing.
At the same time, geopolitical risks, particularly tensions in the Middle East and fluctuations in global oil prices, continue to influence monetary policy decisions across several African economies.
Taken together, the current interest rate environment points to an uneven and still fragile disinflation process across the continent, even as inflation trends show gradual improvement in several countries.
Africa’s Most Expensive Countries to Borrow In (May 2026)
10. The Gambia – MPR: 14.00%
Previous: 16.00% | Last MPC Meeting: February 2026
The Gambia reduced its policy rate by 200 basis points to 14%, making it one out of the two countries in this ranking currently easing monetary policy.
Inflation pressures have moderated due to improved food supply conditions and softer imported inflation, helping to stabilize inflation expectations.
Despite the cut, borrowing costs remain relatively high for a small import-dependent economy that remains vulnerable to external price shocks.
9. Ghana – MPR: 14.00%
Previous: 15.00% | Last MPC Meeting: March 2026
Ghana maintained its benchmark rate at 14.00% for the third consecutive meeting, signaling a pause in its tightening cycle as inflation shows signs of peaking.
The central bank cited a more stable exchange rate and easing global commodity prices as factors supporting the decision, though upside risks to inflation remain.
8. Ethiopia – MPR: 15.00%
Previous: 14.50% | Last MPC Meeting: April 2026
Ethiopia’s central bank raised its policy rate by 50 basis points to 15.00%, citing persistent inflationary pressures and the need to anchor inflation expectations.
The move aims to curb demand-side inflation and support the stability of the Ethiopian Birr amidst global economic uncertainties.
7. Liberia – MPR: 16.25%
Previous: 16.25% | Last MPC Meeting: March 2026
Liberia’s central bank kept its policy rate unchanged at 16.25%, emphasizing the need for continued vigilance against inflation and maintaining financial stability.
The decision reflects a cautious approach, balancing the need to support economic activity with the imperative to control price increases.
6. Sierra Leone – MPR: 16.75%
Previous: 16.75% | Last MPC Meeting: April 2026
Sierra Leone’s Monetary Policy Committee voted to maintain the policy rate at 16.75%, a stance held since August 2025.
The committee noted that while inflation has shown some moderation, it remains above the target band, necessitating a steady monetary policy stance.
5. Angola – MPR: 17.00%
Previous: 17.00% | Last MPC Meeting: March 2026
Angola’s Banco Nacional de Angola held its benchmark interest rate at 17.00% for the second consecutive session.
The decision was driven by a stable inflation outlook and the government’s fiscal consolidation efforts, aiming to foster a conducive environment for investment.
4. Egypt – MPR: 19.00%
Previous: 18.50% | Last MPC Meeting: May 2026
Egypt’s Central Bank raised its key lending and deposit rates by 50 basis points to 19.00%, responding to elevated inflation figures and currency pressures.
This move aims to curb inflationary pressures and attract foreign currency inflows, supporting the country’s economic reform program.
3. Malawi – MPR: 24.00%
Previous: 22.00% | Last MPC Meeting: April 2026
Malawi’s Reserve Bank increased its policy rate by 200 basis points to 24.00%, a decision driven by persistent high inflation and exchange rate volatility.
The rate hike is intended to stabilize prices and restore confidence in the Malawian Kwacha.
2. Nigeria – MPR: 26.50%
Previous: 24.75% | Last MPC Meeting: May 2026
The Central Bank of Nigeria (CBN) raised its Monetary Policy Rate (MPR) by 175 basis points to 26.50% in its May 2026 meeting.
This aggressive hike underscores the CBN's commitment to tackling Nigeria's persistent inflation, which has remained a significant challenge.
1. Zimbabwe – MPR: 35.00%
Previous: 30.00% | Last MPC Meeting: April 2026
Zimbabwe continues to grapple with hyperinflation, leading its central bank to implement a substantial rate hike, bringing the MPR to a staggering 35.00%.
This measure is part of an ongoing effort to stabilize the economy and restore confidence in the Zimbabwean Dollar.
