The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison says the framework for the Bank’s monetary policy is centered on inflation.
He said once the fundamentals are favourable, it will ensure a reasonable exchange rate which is expected to be competitive as well, adding that the bank’s activity in the foreign exchange market is not aiming at setting a particular exchange rate target.
Briefing the media on the Monetary Policy Committee (MPC) stance today, the Governor said the real exchange rate is very consistent with the development of the country’s economic fundamentals.
“So if anything at all we are in a better position to deal with any adverse shocks to the exchange rate over the next quarter, " he stated.
Dr Addison added, “the recent underlying inflation trends gauged by the core inflation and weighted inflation expectations all showed some uptick in August 2019. This gives some indications of emerging pressures coming mainly from the recent upward adjustment of utility tariffs, ex-pump prices and transport fares. The second round effects of these administrative measures would have to be monitored closely over the next quarter.”