BoG keeps monetary policy rate unchanged at 29.5%

The Monetary Policy Committee (MPC) of the Bank of Ghana has kept the policy rate unchanged at 29.5 percent.

The decision comes after the MPC of the Central Bank held its third meeting for 2023 to review economic developments in the country.

Governor of the Central Bank, Dr Ernest Addison explained that the MPC assessed that the recent approval of the Extended Credit Facility (ECF) arrangement with the IMF has reinforced recovery efforts aimed at restoring macroeconomic stability and debt sustainability.

"This should further help reestablish investor confidence in the domestic economy. While this development is positive for the domestic economy, it is conditional on the strong implementation of fiscal and structural policies under the programme going forward"

He continued, "These would include structural reforms on tax policy, revenue administration and public financial management to boost revenues and reposition fiscal policy implementation on a consolidated and sustainable path"

He added that the MPC further noted a significant decline in inflation at the start of 2023 by more than 12 percent.

"The percentage of items in the CPI basket with inflation of more than 50 percent and above is receding which is an indication of a strong return to the disinflation path. This is also supported by core inflation which is also easing at a fast pace," Dr Ernest Addison noted.

MA