BoG maintains policy rate at 17%

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The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG), has maintained the monetary policy rate at 17 percent even though inflation has moved upwards in recent indications.

This is to enable the committee monitor developments in the near-term and adequately prepare to take appropriate policy measures to promptly address potential threats to disinflation.

The Governor, Dr. Ernest Addison, who announced this at the press briefing on Monday said, the overall growth in the Ghanaian economy as projected still remains high, although the private sector remains below expectations.

“There are, however, emerging signs of recovery evidenced by increased new loan advances and easing credit stance on loans to households,” he stated.

He called on both the consumers and businesses to help spur growth over the medium term.

Dr. Addison hinted, the midyear review of the 2018 budget signaled strong commitment to fiscal consolidation as the fiscal deficit target of 4.5 per cent was maintained.

He said the government’s introduction of new measures to close revenue gaps within the first half of the year would require vigilance to keep the fiscal consolidation process on track to sustained gains in the macroeconomic stability.

During the assessment of the balance of risks, the committee indicated that, though inflation had moved upwards, it came about mainly from the effects of increases in administrative petroleum prices and transportation cost.

“The committee was of the view that, second round effects from these relative price changes would not be significant enough to alter the inflation trajectory over the medium-term,” he announced.

Source: Nii Aflah Sackey

 

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