Bank of Ghana maintains policy rate at 30%

AFRICAN BUSINESS AND ECONOMYSeptember 27, 2023 at 1:12 PM UTC

The Bank of Ghana (BoG) Monetary Policy Committee (MPC) has opted to maintain the benchmark policy rate at 30 percent, citing the observed stability in the macro economy, notably the recent decline in domestic inflation.

This decision emerged after the conclusion of the 114th MPC meeting, during which the committee emphasized its commitment to inflation management and the overall stability of the economy.

BoG Governor Dr. Ernest Addison, in a press briefing, noted, "While the disinflation process has resumed – which should result in a gradual return to the target band over the medium-term barring unanticipated shocks – rising international crude oil prices and adjustments to utility tariffs remain a risk to the inflation outlook, which will have to be managed through monetary policy vigilance."

Key Takeaways

The MPC reiterated that the adherence to a stringent monetary policy stance and the relative stability of the exchange rate have been pivotal in facilitating the ongoing disinflation process. Since December 2022, headline inflation has witnessed a significant cumulative decline of 14%, while non-food inflation has also notably decreased by nearly 20%. This underscores the effectiveness of the central bank's monetary policies. The decision to maintain the policy rate at 30% underscores the Bank of Ghana's unwavering commitment to preserving economic stability and effectively managing inflation, especially in light of potential risks. With positive economic indicators and promising growth prospects, Ghana stands well-positioned to continue its path toward sustained economic recovery.