The Bank of Ghana (BoG) has maintained the Monetary Policy Rate (MPR) at 29% for the third consecutive time, citing inflation risks.Governor Dr. Ernest Addison announced the decision after the Monetary Policy Committee (MPC) meeting in Accra.
“Though inflation is expected to remain within the target year band of 15%, risks are tilted slightly on the upside, with some uncertainty regarding the inflation path for the year,” Dr. Addison said.
He attributed this uncertainty to recent exchange rate pressures, upward adjustments in utility tariffs, and increases in ex-pump fuel prices. Despite this, Dr. Addison noted positive economic indicators, including a 4.7% GDP growth in the first quarter of 2024, compared to 3.1% in the same period of 2023.The banking sector showed signs of recovery, with total assets growing by 33.3% to GH¢323.1 billion at end-June 2024. Profitability, liquidity, and efficiency indicators also improved over the period.
Dr. Addison emphasized the need for a strong monetary policy stance to achieve end-year inflation objectives.
“This will require maintaining the strong monetary policy stance supported by strong fiscal consolidation efforts, including remaining vigilant to ensure that the end-year inflation objectives are achieved.”
Story by: Michael Seh
