Gambia, The Lending Rate

Gambia’s lending rate fell to 13.65 % in 2025, placing it 22nd lowest among the world’s economies and representing the lowest level recorded since coverage began in 1985, when the rate stood at 14.48 %. The dramatic decline from the all‑time peak of 36.50 % in 2004 reflects successive monetary‑policy adjustments aimed at stimulating credit growth and stabilising inflation after a period of high external debt servicing costs. By comparison, Kenya’s rate of 13.54 % and Iceland’s 14.41 % illustrate that Gambia now operates in a similar low‑rate environment to other emerging and small open economies, suggesting convergence toward regional norms. The sustained reduction aligns with the Central Bank’s efforts to improve financial inclusion, yet the narrow margin above Kenya indicates limited further room for easing without risking asset‑price distortions. Continued fiscal consolidation and the gradual deepening of domestic capital markets will be crucial if Gambia seeks to maintain downward pressure on borrowing costs and avoid a reversal of this downward trajectory.