Zo Andriatsitohaina, economist and stock market analyst, says the BFM's decision to raise its key rate to 12.5% comes at the wrong time, creating tension with the government's stimulus strategy. On one side, the Ministry of Economy and Finance (MEF) is pursuing an economic recovery plan aimed at encouraging private investment. On the other, BFM (Banky Foiben'i Madagasikara) has tightened monetary policy by raising its key rate from 12% to 12.5%. For Andriatsitohaina, this decision risks undermining the desired economic momentum. He acknowledges that central banks must remain independent from government and set their own monetary policy. "But even with this independence, I believe this increase is poorly timed. This is not the moment," he states. The rate hike contradicts state measures designed to finance the economy and encourage private investment. BFM justified its move as necessary to control inflation. However, Andriatsitohaina argues that current price increases stem primarily from external factors, not excess money supply. Madagascar's heavy dependence on imports means international price hikes directly affect the domestic economy. He points to geopolitical tensions and cyclone damage this year as key drivers. Despite the ariary's appreciation in the first half of 2026—which typically moderates inflation—prices rose from about 6% in January to nearly 8.5%, suggesting causes beyond monetary policy alone. Andriatsitohaina believes priorities should be twofold: BFM should focus more on ariary stability while the state accelerates production and economic recovery. "If a rate cut wasn't possible, maintaining it at 12% would have been better. BFM had the opportunity to lower it to 11.5% recently. A 0.5-point increase would have brought us to 12% now," he argues. The rate hike risks raising financing costs, benefiting banks more, and crucially, deterring private investment when the economy needs new growth drivers.