BoG defends decision to hold policy rate at 14% amid global uncertainties

The Bank of Ghana (BoG) has defended its decision to maintain the Monetary Policy Rate (MPR) at 14 per cent, saying easing global oil prices, a favourable inflation outlook and strong external reserves have given policymakers confidence to keep borrowing costs unchanged while monitoring evolving economic risks.

Speaking on Joy FM's Super Morning Show on Thursday, July 23, the Bank of Ghana Director of Research, Dr Philip Abradu-Otoo, explained that the decision by the Monetary Policy Committee (MPC) at its 131st meeting was guided by a cautious assessment of both domestic and global economic conditions.

The MPC, which meets every two months, will examine the latest data on inflation, exchange rate movements, global commodity prices, domestic economic activity and other macroeconomic indicators before determining whether changes to monetary policy are necessary.