The Central Bank of Ghana (BoG) has increased the Monetary Policy Rate (MPC) to 27% from 24.5%.
The decision was taken during the 109th MPC meeting which was held last week.
The Committee forecasts that the inflation rate will continue to rise until the end of next year and thereby the decision to increase the policy rate.
“The Committee is of the view that significant upside risks to the inflation outlook remain. To continue to anchor inflation expectations, the Committee, therefore, decided to increase the policy rate by 250 basis points to 27.0 per cent.”
The monetary policy rate has been increased for the third consecutive time after it was maintained at 19% in July.
In August during an emergency MPC meeting, the BoG increased the policy rate to 22%.
The Bank again increased it to 24.5% after the 108th MPC meeting.
The increase in Policy rate is meant to boost savings and slow down an increase in the money supply and therefore to fight inflation.
In the same way, this measure increases the cost of credit.
Source: opemsuo.com/Hajara Fuseini