Togo's monetary policy will continue to be set by the regional central bank, Banque centrale des Etats de l'Afrique de l'ouest (BCEAO), whose priorities are to control inflation and maintain the CFA franc's peg to the euro. Policy will therefore continue to be influenced by that of the European Central Bank (ECB). Concerns about the fiscal sustainability and coherence of the euro area are set to persist in 2011 and the ECB will maintain low-though rising-interest rates over the forecast period. We expect the regional central bank to track this, raising its repurchase rate, taux des appels d'offres, by 25 basis points in 2011 and again in 2012. Injections of liquidity will remain the prime policy tool; the BCEAO has recently introduced two new liquidity offerings as demand has picked up.