The Bank of Ghana has maintained the monetary policy rate at 30 per cent after reviewing developments in the economy.
This means that the lending rate in the country will remain steady.
It is the second time the Central Bank has held the rate in a year after doing the same in May 2023.
After the rate was hiked by 50 basis points in July due to inflationary pressures, the market turned towards policy rate retention on the back of the ease in inflation for the month of August.
“All core inflation measures, monitored by the central bank are trending downwards, indicating continued easing of underlying inflationary pressures. In addition, one-year ahead survey-based inflation expectations seem well anchored”, Governor of the Bank of Ghana, Dr. Ernest Addison said while addressing the 114th Monetary Policy Committee meeting on Monday, September 25, 2023.
He further explained that the decision by the Central Bank to stay the policy rate is to quicken the path of disinflation on the back of anticipated global pressures.
“While the disinflation process has resumed, which should result in a gradual return towards the target band over the medium-term barring unanticipated shocks, rising international crude oil prices and adjustments to utility tariffs remain a risk to the inflation outlook which would have to be managed through monetary policy vigilance. Given these considerations, the Committee decided to maintain the policy rate at 30.0 percent.”
It is the expectation of the Committee that the rate of disinflation will continue.
However, it stands ready to respond appropriately should inflation deviate from these broad expectations.