The Bank of Ghana has kept its monetary policy rate at 27 percent to mitigate the risk of inverted inflation and support the country’s ongoing economic recovery.
This decision follows Ghana’s failure to meet its 2024 year-end inflation target of 15 percent, with the rate rising to 23.8 percent in December 2024.
Speaking at the first Monetary Policy Committee press briefing of 2025, Bank of Ghana Governor Dr. Ernest Addison stated that the Central Bank would maintain its cautious approach in light of persistent inflationary pressures and global economic uncertainties.
“The inflation profile remains elevated, largely driven by food price movement, especially in the last 4 quarters of the year. The climate-related factors, including the dry spell in some parts of the food-growing regions of the country and the late onset of rains negatively affected production. While supply chain weaknesses generally affected food prices,”
“While the inflation outlined for the year 2024 deviated from target, it is expected that the disinflation process will resume contingent on renewed efforts at fiscal consolidation, which is anticipated in the new administration’s economic policy agenda and the yet-to-be-presented 2025 budget statement.
The bank’s latest inflation forecast shows a steady decline and return to the path of this inflation with an extended time horizon of achieving the medium-term target of 8 plus or minus 2%.
Under the circumstances, the committee decided to keep a monetary policy rate unchanged at 27%. “
