The Bank of Ghana (BoG) has opted to maintain the Monetary Policy Rate at 29% for the third consecutive time. The decision comes after the 119th meeting of the Monetary Policy Committee (MPC).
The policy rate, a key tool used by Central Banks to influence interest rates and money supply, has remained unchanged despite some positive economic indicators.
While inflation is showing signs of easing, the BoG remains cautious due to uncertainties in the macroeconomic environment.
According to BoG Governor Dr. Ernest Addison, the Ghanaian economy has shown resilience, with stronger-than-expected GDP growth in the first quarter of 2024.
However, consumer and business confidence has dipped due to recent exchange rate fluctuations and high food prices.
While acknowledging the downward trend in inflation, Dr. Addison emphasized the need for continued vigilance.
The central bank believes that maintaining a tight monetary policy stance, coupled with fiscal consolidation efforts, is essential to achieving the year-end inflation target.
The decision to hold the policy rate steady indicates the BoG’s commitment to balancing economic growth and price stability.