Democratic Republic of Congo39;s central bank said it expected to cut its main interest rate in 2022 from 8.5 to 7.5 following a period of macroeconomic stability.

The bank said in a statement shared with Reuters on Tuesday that the economy recovered strongly from the impact of the COVID19 pandemic in 2021, growing by an estimated 5.7.

It said growth is projected to rise to 6.1 in 2022.

The bank cut the interest rate three times last year, from 18.5 to 8.5.

The head of the International Monetary Fund last month called Congo a rare bright spot in Africa39;s economic performance, owing to high commodity prices and government reforms that have improved public finances. 

Congo is Africa39;s top producer of copper and the world39;s leading miner of the battery metal cobalt. Prices for both metals have risen significantly over the past year.

Even so, Congo remains one of the world39;s poorest and least developed countries, held back by conflict, corruption and a legacy of poor governance.

The central bank said inflation was estimated at 5.1 in 2021 and was projected to remain around 5 in 2022.

Reporting by Hereward Holland; Writing by Aaron Ross; Editing by Andrew Cawthorne

Source Reuters