Although the Director of Research at the Institute of Economic Affairs (IEA) Dr John Kwakye has welcomed the reduction in the policy rate from 29% to 27%, he says he expects more cuts to follow.
The Monetary Policy Committee announced the cut in the policy rate to 27% on Friday, September 27 during the 120th MPC press conference in Accra.
Justifying the reduction, the Chair of the MPC, Dr Ernest Addison said that the domestic economy continues to recover. "Macroeconomic conditions have generally improved, growth picked up, headline inflation dropping, monetary conditions remain tight, disinflation process is on the course," he said.
He stated that in the assessment of the Committee, preliminary data since the last MPC meeting held in July 2024 indicates that macroeconomic conditions have generally improved.