BoG Stays Policy Rate
The Central Bank of Ghana has maintained Monetary Policy Rate (MPR) at 29.5%.
This was announced after the 112th Monetary Policy Meeting and follows the International Monetary Fund’s approval of the country’s request for a US$3 billion bailout.
In arriving at this decision, the Bank said it considered the weak domestic economy in the first quarter of 2023; moderation in global inflation; and decline in domestic inflation.
The policy rate hike is used to control inflation by encouraging savings and reducing spending by the public.
The Central Bank in a press statement announcing the MPR noted that it has in place policies that will continue to cool off inflation.
“The tight monetary policy through additional liquidity management operations to address excess liquidity conditions in the market, relative stability in the local currency, and easing of ex-pump petroleum prices have supported the disinflation process.
“Furthermore, the Bank of Ghana has signed the Memorandum of Understanding on zero financing to the budget to eliminate fiscal dominance and allow for faster ease in inflation towards the target band. These policies should provide the much-needed anchor to reinforce the disinflation process and reset the economy on the path of recovery.”
Inflation currently stands at 41.2%.
