Policy Rate Kept at 29%
The Bank of Ghana (BoG) has maintained policy rate at 29% after their Monetary Policy Committee (MPC) meeting.
The decision by the Bank is according to global growth; strong foreign exchange reserves; expected easing of monetary policy by central banks; stronger external sector position; policies alignment with the tenets of the IMF-supported programme; and projected disinflation.
Addressing the press on Monday, May 27, 2024, the Governor of the Bank, Ernest Addison, said these elements called for the maintenance of the Policy rate.
According to him, global growth remains relatively strong, bolstered by an expansion of economic activity in large economies, despite the tight monetary policy stance and steady improvement in economic activity evidenced by continued steady growth in the Composite Index Economic Activity (CIEA).
“Ghana’s external sector position remains strong although the current account surplus nearly halved in the first quarter of the year. The performance in the current account reflects a rebound in imports and net income payments.
“Accumulation of reserve buffers remains on course and set to exceed the programme expectation in June, largely due to the domestic gold purchase programme. The Bank’s reserve at end-April 2024 currently stands at 3.0 months of import cover,” he added.
On inflationary levels, the Bank’s Governor indicated that projections show inflation will remain within the monetary policy consultation clause of 13-17 per cent at the end of the year.
“These forecasts are contingent on sustaining the tight monetary policy stance, including aggressive liquidity management operations.”
The BoG set the policy rate at 29% at the beginning of the year and has maintained it since then.
