Bank of Ghana cuts policy rate from 29% to 27%

The Bank of Ghana has cut the monetary policy rate by 200 basis points, from 29 percent to 27 percent.

The Chairman of the MPC and BoG Governor, Dr. Ernest Addison, stated that the decision is attributed to the relative stability of the cedi, inflation trending downwards towards a more balanced position, robust fiscal policy implementation, and improved macroeconomic conditions.

He also noted a significant improvement in the reserves of the Central Bank of Ghana.

"Fiscal policy implementation has been robust, providing impulse that is supportive of growth, while monetary conditions have remained tight and supportive of the disinflation process.

"Headline inflation, since the first quarter, has declined for 5 consecutive months by 5.4 percentage points. Core inflation has also declined sharply over the same comparative period by 6.9 percentage points.

"These trends suggest that the disinflation process is on course. The latest forecasts show that inflation will continue to ease towards the range target of 13-17 percent for the year and steadily track back towards the medium-term target of 6-10 percent by the end of 2025, barring unanticipated shocks. At the current juncture, the committee judged the risks to inflation outlook as fairly balanced.

"Given these considerations, the Committee decided to lower the Monetary Policy Rate by 200 basis points to 27.0 percent."

Dr. Addison made this known during a press briefing on Friday, September 27, 2024 to mark the 120th Monetary Policy Committee meeting.



MA

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