MPC meets as inflation, cedi stability and global risks dominate agenda

The Monetary Policy Committee (MPC) of the Bank of Ghana begins its three-day meeting today to assess developments in the economy over the past two months, with inflation, external risks and the recent stability of the cedi expected to dominate discussions.

Before tensions in the Middle East escalated and pushed global crude oil prices higher, there were strong expectations that the Bank of Ghana would begin easing monetary policy with a modest reduction in the policy rate.

However, the renewed external risks have changed that outlook, with several economists now expecting the Committee to adopt a cautious “wait-and-see” approach and maintain the policy rate at 14% while assessing the impact of global developments on inflation and economic growth.