BEAC tigthens access to loan to supposedly fight inflation

Unsurprisingly, the Central African central bank, BEAC, increased its key rates. The hike seems more like a follow-through choice than an appropriate solution to the inflationary challenges faced by CEMAC countries. The BEAC, the central bank of the six CEMAC states, recently raised its key rates that influence commercial banks’ ability to grant loans. For instance, its main refinancing rate, or TIAO, was raised from 4% to 4.5%.  Its marginal lending facility rate -for less than 24-hours bank loans- was raised from 6.25% to 6.75%. This is the second consecutive rate hike in the region. Per conventional monetary science, the…