BoG stays policy rate at 29%

The Bank of Ghana has maintained its monetary policy rate at twenty-nine per cent.

This comes amid calls from the International Monetary Fund to Central Banks to be careful when cutting interest rates as looser monetary policy could push inflation up further.

The bank’s inflation expectations survey across banking, consumer and business sectors has indicated overall stability in future inflation expectations

Meanwhile, global inflation has continued to alleviate, primarily due to declining food and energy prices, coupled with tight monetary policies

Looking ahead, global inflation is anticipated to further decline, although geopolitical tensions and potential supply disruptions in the Red Sea region pose significant risks.

Despite easing inflation, global financing conditions remain constrained, partly due to uncertainties surrounding developments in the Middle East, potentially impacting energy prices and prolonging central banks’ cautious stance on interest rates.

The MPC’s decision to maintain the monetary policy rate underscores the Bank of Ghana’s commitment to balancing economic stability amid persistent inflationary risks and supporting sustainable growth of the economy.