The market expects the Monetary Policy Committee (MPC) of the Bank of Ghana to adopt a policy-hold strategy this week at its 112th meeting by keeping the rate at 29.5 per cent as inflation continues to trend downward.
The central bank’s MPC tightened financial conditions further by raising the policy rate by a total of 250 basis points (bps) to a record high of 29.5 per cent in Q1-2023 while also increasing the cash reserve in order to accelerate the pace of disinflation and re-anchor inflation expectations.
The central bank’s MPC further tightened financing conditions by raising the policy rate by a total of 250 basis points (bps) to a record high of 29.5 per cent in Q1-2023 and raising the cash reserve ratio (CRR) by 200 basis points to 14 per cent in order to accelerate the pace of deflation and re-anchor inflation expectations.
In its analysis of the April 2023 inflation data and prognosis, Apakan Securities stated that they anticipate the Bank of Ghana MPC will hold to decrease interest rates.
At its next meeting in May 2023, the MPC of the Bank of Ghana is likely to adopt a policy-hold strategy as inflation continues to move downward.
