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Bank of Ghana maintains policy rate at 30%

The monetary policy committee of the Bank of Ghana (BoG) has maintained the policy rate at 30%.

The policy rate indicates the rate at which the central bank lends to commercial banks in Ghana.

The decision was taken after the committee reviewed the current economic situation as the rate of inflation for October 2023 declined to 35.2%.

Speaking at a media briefing in Accra on Monday (27 November), the Governor of BoG Ernest Addison said the committee was of the view that the current inflation rate of 35.2% was still high which required a tight monetary stance.

“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. All the core measures of inflation and inflation expectations are pointing downwards, and the bank will remain vigilant on risks to the disinflation process,” he said.

“The committee 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. Given these considerations, the committee decided to maintain the monetary policy rate at 30.0%” Addison said.

MPC Press Release November 2023

 

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