The Bank of Ghana’s (BoG) monetary policy committee has kept the policy rate at 30%.
The policy rate is the interest rate at which the Ghana Central Bank lends to commercial banks.
The committee made the decision after reviewing the present economic circumstances since the rate of inflation for October 2023 fell to 35.2%.
At a press conference in Accra on Monday (27 November), Governor of the Bank of Ghana Ernest Addison stated that the committee believed the current inflation rate of 35.2% necessitated a tight monetary approach.
“Headline inflation has continued to decelerate in recent months, as expected. According to the most recent bank prediction, the disinflationary process is projected to continue, aided by the current tight monetary policy stance, relatively stable currency rate, and base drift effects. All of the core inflation and inflation expectations measures are pointing downward, and the bank will remain vigilant on risks to the disinflationary process,” he said.
“The committee noted that, while inflation is slowing, it remains high relative to the target.” As a result, the policy rate must be kept tighter for longer until inflation is firmly anchored on a downward trajectory towards the medium-term target. Given these considerations, the committee opted to keep the monetary policy rate at 30.0%,” Addison added.
