Bank of Ghana’s MPC to begin final meetings for 2020 on Wednesday

The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) is scheduled to hold its regular three-day deliberations from Wednesday, November 18 to Friday, November 20, 2020.

For the committee’s 97th meeting and the last for this year, it is expected to review developments of Ghana’s economy and announce the monetary policy rate of the central bank.

The MPC will also initiate proposals for the formulation of the monetary policies of the central bank, provide statistical data, advice and necessary steps for economic growth.

According to a statement issued by the central bank, the Monetary Policy Committee will conclude with a press conference on Monday, November 23, 2020 to announce the decision of the policy rate.

The Monetary Policy Rate will be of key interest to businesses as it influences the interest rate on loans and determines the rate at which the central bank lends to commercial banks.

At the central bank’s last meeting in September this year, it kept its monetary policy rate unchanged at 14.5 percent.

Governor of the Bank of Ghana, Dr Ernest Addison, explained the decision was based on the drivers of economic growth returning to normal prospects for a good recovery.

“Consumers seem to be responding to the gradual lifting of restrictions which provides some scope for meaningful economic activities. Business confidence also increased, but yet to reach pre-lockdown levels,” the Governor explained.

He indicated, “About 95 percent of businesses surveyed showed strong optimism, reflecting the improving macroeconomic conditions, stability in the exchange rate, lower input prices, moderation in lending rates, and positive industry prospects.”

“Monetary and fiscal policies have been supportive providing the necessary underpinnings for the economy to withstand the negative output shock arising from the pandemic. Under these circumstances, the Committee's view is that the risks to the immediate outlook for inflation and growth are broadly balanced and decided to keep the policy rate unchanged at 14.5 percent,” Dr Addison stated.

Dr Ernest Addison added that inflation is projected to return to a medium term target by the second quarter of 2021.

Finance Minister, Ken Ofori-Atta, on the hand has projected economic growth for Ghana is projected to rebound strongly at 5.7 percent in 2021.