MONETARY POLICY COMMITTEE MAINTAINS POLICY RATE AT 21 PER CENT

The Monetary Policy Committee (MPC) Bank of Ghana (BoG) has decided to maintain the monetary policy rate at 21 per cent.

 

The decision followed the 78th regular meeting of the MPC in Accra.

 

Dr Ernest Kwamina Yedu Addison, Governor, BoG, who announced the decision at a news conference in Accra, yesterday, explained that in arriving at the decision, the MPC was informed by the economic developments in both the global and domestic fronts.

 

Dr Addison said in taking the decision, the Committee observed that improved global growth prospects and accommodative monetary policy stance in advanced economies had impacted favourably on Ghana’s external position.

 

The Committee, he said,  noted, however, that the recent signals of monetary policy normalization could result in tight global financing conditions which may pose some balance of payments pressures in the outlook.

 

He said even though the monetary policy stance had eased in line with declining inflation and underlying inflation pressures since the beginning of the year, the Committee decided it was time to pause the easing cycle in view of emerging risks to the inflation outlook.

 

Dr Addison gave the assurance that the Committee would remaining vigilant and respond with take the necessary policy actions should these initial signs of underlying pressures persist.

 

Source: ISD (G.D. Zaney)