Monday, 26 February

BoG keeps policy rate at 30%

Business
The MPC said headline inflation has continued to decelerate in the past few months consistent with forecasts

The Monetary Policy Committee of the Bank of Ghana has maintained the policy rate at 30 per cent.

At its meeting on Monday, 27 November 2023, the MPC noted that although inflation is decelerating, it remains high relative 

to target. 

"Therefore, there is a need to keep the policy rate tighter-for-longer until inflation is firmly anchored on a downward trajectory towards the medium-term target", Governor Ernest Addison explained. 

He said: "Given these considerations, the Committee decided to maintain the monetary policy rate at 30.0 per cent".

The MPC said headline inflation has continued to decelerate in the past few months consistent with forecasts. 

The latest Bank forecast indicates that the disinflation process is expected to continue, supported by the current tight monetary policy stance, relatively stable exchange rate, and base drift effects.

The central bank said all the core measures of inflation and inflation expectations are pointing downwards, and it will remain vigilant on risks to the disinflation process.

Source: classfmonline.com