The second issue in the “Thematic Study Notes” series has been published on the COFEB website.

It was written by Kouamé Désiré Kanga, a former COFEB researcher, on the subject of "Low-interest-rate monetary policy".

This TSN focuses on unconventional monetary policy measures, which many central banks have used to counter the harmful consequences of crises around the world, particularly the subprime crisis that started in the United States in 2007 and, more recently, the COVID-19 crisis.

The note introduces readers to international experiments focusing on the effectiveness of unconventional monetary policies, outlines measures taken to deal with near-zero key rates, and highlights the lessons that can be learned by the BCEAO. In this connection, it should be noted that the BCEAO anticipated the constraints associated with low interest rates (zero interest) and adopted emergency measures from the outset of the COVID-19 pandemic crisis.

In conclusion, this study can help readers gain a better grasp of central banks' use of unconventional measures when they are unable to lower their key rates further because they are already close to zero. It can also further their understanding of the actions taken by central banks in times of severe crisis to contain negative repercussions on prices, in particular, and on the economy, in general.