BoG Maintains Policy Rate at 30 Percent as Inflation Remains High

The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has announced its decision to maintain the policy rate at 30 percent.

The announcement was made by Governor Dr Ernest Addison during the 115th MPC press conference in Accra today.

Governor Addison highlighted that although inflation has been decreasing, it still remains at a high level. As a result, the MPC has decided to keep the policy rate unchanged until inflation is firmly under control.

In his statement, Governor Addison acknowledged the positive trend in inflation, which has been gradually declining over the past few months.
However, he emphasized the need for caution, as the current inflation rate is still considered high and requires further monitoring.

The decision to maintain the policy rate at 30 percent is aimed at ensuring price stability and anchoring inflationary expectations. By keeping the policy rate unchanged, the MPC intends to provide support for the ongoing efforts to curb inflation and promote sustainable economic growth.

The Governor also highlighted other factors influencing the decision, such as global economic uncertainties and their potential impact on Ghana’s economy.
He emphasized the need for a balanced approach to monetary policy, considering both domestic and external factors.

Furthermore, Governor Addison stressed the importance of structural reforms and prudent fiscal management to complement monetary policy measures.
He emphasized the government’s commitment to implementing reforms that would enhance the country’s economic resilience and competitiveness.

The decision to maintain the policy rate at 30 percent is expected to contribute to the stability of the Ghanaian economy by ensuring that borrowing costs remain relatively high, thereby discouraging excessive consumption and promoting savings.

The Bank of Ghana remains committed to its mandate of maintaining price stability and fostering a conducive environment for sustainable economic growth.
The MPC will continue to closely monitor economic indicators and make adjustments to the policy rate as necessary to achieve its objectives.

As the year comes to a close, it is anticipated that the Bank of Ghana will continue to implement measures to address inflationary pressures and support the overall stability of the economy.

Source: Vincent Kubi