The Monetary Policy Committee of the Bank of Ghana (BoG) is set to announce its decision on the policy rate, which will impact the cost of lending for the next two months of the year.
During its third meeting of the year, the MPC maintained the policy rate at 29 percent.
Dr. Ernest Addison, the Chairman of the MPC and Governor of the Central Bank, cited risks of inflation slightly moving upwards as the reason for the Committee's last decision in March this year.
Speaking to journalists on Monday, March 25, 2024, Dr. Addison stated that the Central Bank was closely monitoring developments and was prepared to take action if necessary.
The BoG Governor emphasized that headline inflation is projected to decrease to approximately 13-17 percent by the end of 2024, before gradually returning to the medium-term target range of 6-10 percent by 2025.
In April of this year, inflation slowed down marginally from 25.8% to 25%, according to the Ghana Statistical Service.
The Ghana Cedi has also depreciated by 13.7% against the US dollar so far this year, according to Bloomberg estimates. The local currency is trading at GH¢15.00 to $1 at major forex bureaus in the capital Accra as of May 27, 2024.
During the 118th meeting, the MPC discussed proposals for the central bank's policy formulation, the provision of statistical data, and economic advice.
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