BoG Maintains Policy Rate At 30%
The Central Bank of Ghana has maintained the Monetary Policy Rate (MPR) at 30%.
The BoG says it arrived at the decision after considering the improving macroeconomics; Global inflation; the country’s external sector position and other factors.
Despite a slowdown in global growth momentum in advanced economies with the Euro area a key downside risk, the BoG anticipates that emerging market and developing economies are expected to post some strong growth at 4.0 percent in 2023.
Additionally, it said the Monetary Policy Committee observed the overall improvement macroeconomic conditions with relatively strong economic growth and drop-in inflation in August plus an anticipated continuation in “strong growth” outturn in the third quarter.
Meanwhile, it said, “the country’s external sector position has continued to improve significantly in the first eight months of the year, supported by a current account surplus, reflecting higher gold export receipts, import compression, and lower outflows from the services and income accounts.”
Although it observes disinflation has started, rising international crude oil prices and adjustments to utility tariffs remain a risk to the inflation outlook, the BoG said.
“Given these considerations, the Committee decided to maintain the policy rate at 30.0 percent,” it said noting the Committee stands ready to respond appropriately should inflation deviate from these broad expectations.
