Bank of Ghana hikes monetary policy rate to 30%

The Monetary Policy Committee of the Bank of Ghana has hiked the monetary policy rate by 0.5 percentage points from 29.5% to 30%.

The decision by the Committee can be attributed to risks to the inflation profile which are judged to be elevated and driven by second round effects of food prices.

"Inflation has persistently hovered around 42 percent throughout the second quarter of 2023 even though central bank financing has been eliminated in the first six months of the year. Ghana’s macroeconomic framework requires decisive tightening from both the fiscal and monetary side to anchor inflation expectations firmly on a declining path."

"Given these considerations and under the current circumstances, the Committee has decided to increase the Monetary Policy Rate by 0.5 percent to 30 percent"

Governor of the Central Bank, Dr. Ernest Addison said this at a press briefing on July 24, 2023 in Accra.

He however noted that the committee, will in the coming months, monitor closely incoming inflation data and will respond appropriately, if needed, should inflation persist.

MA

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