Bank of Ghana justifies decision to maintain Policy Rate at 29%

Economy & Investments BoG Governor, Dr. Ernest Addison
MAR 25, 2024 LISTEN
BoG Governor, Dr. Ernest Addison

The Bank of Ghana (BoG) has maintained the Policy Rate at 29%.

This is a decision taken after the Monetary Policy Committee (MPC) meetings which took place last week.

The Committee at the meetings deliberated on global and domestic macroeconomic developments, including an assessment of the performance of the economy and the risks to the outlook for inflation.

In a press release, the Bank of Ghana said the decision to maintain the policy rate at 29% is because risks to inflation are slightly on the upside.

“After decelerating sharply in 2023, the pace of disinflation has slowed in the first two months of the year. Although inflation rose slightly in January 2024 and edged down in February, the latest inflation forecast suggests a slightly elevated profile from the possible upward revision in transport fares, adjustment in utility tariffs, higher ex-pump prices, and some pass-through of exchange rate depreciation.

“Overall, risks to inflation are slightly on the upside and will require close monitoring. Given these considerations, the Committee decided to maintain the Monetary Policy Rate at 29.0 percent,” the Bank of Ghana said in a press release on Monday, March 25.

Eric Nana Yaw Kwafo
Eric Nana Yaw Kwafo

JournalistPage: EricNanaYawKwafo