BoG Stays Monetary Policy

The Bank of Ghana (BoG) has decided to maintain the Monetary Policy Rate at 19.0%.

This was after the BoG’s 107th Monetary Policy Committee meeting from July 20, 2022, to July 22, 2022.

The decision to maintain the Monetary policy was based on the assessments deemed appropriate by Ghana’s Central Bank.

One of the assessments indicates that GDP growth is likely to slow down to 3.7- 4.5 per cent from the projection of 5.8 per cent for 2022.

Another assessment is that recent developments in the macroeconomy may pose some upside risks to the banking sector’s outlook and will require strong risk management by the industry and effective supervision.

Also, the outlook is for continued tightened borrowing conditions which underscore the need to reprioritise spending programmes within the available financing envelopes.

The decision is also premised on the IMF intervention Ghana is currently seeking.

“The Committee expects that the macroeconomic framework that will underpin an agreed IMF-supported programme will present a stronger coordinated monetary and fiscal policy framework that will anchor stability and prevent a wage-price spiral, which will lead to inflation becoming more entrenched.”

Since November 2021, BoG has increased the policy rate by a cumulative 550 basis points.

Source: opemsuo.com/Hajara Fuseini