The Monetary Policy Committee (MPC) of the Bank of Ghana has opted to keep the policy rate steady at 29 percent following a thorough assessment of economic conditions.
Dr. Ernest Addison, Governor of the Bank of Ghana, explained during the 117th Monetary Policy Committee briefing in Accra that this decision reflects the recent trends in inflation and other economic indicators.
Dr. Addison highlighted that headline inflation saw a marginal decline to 23.2 percent in February, although the pace of disinflation has slowed compared to the previous year.
He noted, “After decelerating sharply in 2023, the pace of disinflation has slowed in the first two months of the year.”
The forecasted inflation trajectory indicates a slightly elevated profile due to potential factors like adjustments in transport fares, utility tariffs, higher fuel prices, and some impact from exchange rate fluctuations.
The Governor emphasized the need for vigilance regarding inflation risks, stating, “Overall, risks to inflation are slightly on the upside and will require close monitoring.”
Consequently, the MPC chose to maintain the Monetary Policy Rate at 29.0 percent to support stability amid these economic dynamics.
Source-myjoyonline
