- The Bank of Ghana’s (BoG) monetary policy committee has kept the policy rate at 30%. The rate at which Ghana’s central bank loans to commercial banks is known as the policy rate.
- The committee considered the state of the economy before making its judgment, with the October 2023 inflation rate down 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.
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%
- The Bank of Ghana’s (BoG) monetary policy committee has kept the policy rate at 30%. The rate at which Ghana’s central bank loans to commercial banks is known as the policy rate.
- The committee considered the state of the economy before making its judgment, with the October 2023 inflation rate down 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.
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%
