BoG Reduces Policy Rate To 29

The Monetary Policy Committee of the Bank of Ghana (BoG) has reduced its policy rate from 30% to 29%.

The policy rate indicates the rate at which the central bank lends to commercial banks in Ghana.

The monetary policy committee of the Bank of Ghana (BoG) in November last year maintained the policy rate at 30%.

Speaking at a news conference on Monday (29 January), governor of the BoG Dr Ernest Addison attributed the committee’s decision to the steady decline in headline inflation.

“The latest forecast suggests that the disinflation process will persist, and headline inflation is expected to ease to around 13%-17% by the end of 2024, before gradually trending back to within the medium-term target range of 6%-10% by 2025,” he said.

“These forecasts notwithstanding, there are upside risks to the inflation outlook and there is need for strict implementation of the 2024 budget and a tight monetary policy stance to sustain the disinflation process.”
 
“The committee noted the emerging recovery but sees the need to sustain a strong policy stance to consolidate the disinflation gains. Under these circumstances, the Committee decided to decrease the Monetary Policy Rate by 100 basis points to 29%,” Addison added.