Bank of Ghana reduces policy rate to 27%

The monetary policy committee of the Bank of Ghana (BoG) has reduced the policy rate by 200 basis points from 29% to 27%.

This is the second time the central bank is reducing the policy rate after it reduced it from 30 to 29% in January this year.

The decision was taken after the committee reviewed the current economic situation as the rate of inflation for August 2024 declined to 20.4%.

Addressing a news conference on Friday (27 September) in Accra, governor of BoG, Dr Ernest Addison attributed the reduction to a relatively stable cedi, lower risk inflation, robust fiscal policy implementation, and improved macroeconomic conditions.

“Macroeconomic conditions have generally improved while disinflation process is on course,” he said.

”The latest forecasts show that inflation will continue to ease towards the range target of 13-17 percent for the year and steadily track back towards the medium-term target of 6-10 percent by the end of 2025, barring unanticipated shocks.”

”At the current juncture, the committee judged the risks to inflation outlook as fairly balanced. 23. Given these considerations, the Committee decided to lower the Monetary Policy Rate by 200 basis points to 27.0 percent,” Addison said.