BoG’s monetary policy rate remains unchanged at 27%. This decision to hold the rate steady is to counter elevated inflation risks and support the country’s ongoing economic recovery efforts.
Governor Dr. Ernest Addison said the central bank will continue with its cautious stance in the face of underlying inflationary pressures and global economic uncertainties. Dr. Addison said the Bank’s latest inflation forecast shows a steady decline and return to the path of disinflation.
However, he cautioned that the inflation profile remains elevated, largely driven by food price movements – especially in the year’s last quarter.
Governor Addison noted that climate-related factors – including the dry spell in some parts of the country’s food-growing regions and late onset of rains – negatively affected production, while supply chain weaknesses generally affected food prices.
While the inflation outturn for the year 2024 deviated from its target, it is expected that the disinflation process will resume – contingent on renewed efforts at fiscal consolidation, he continued. This comes after Ghana failed to meet its 2024 end-year inflation target of 15% as the rate inched up to 23.8% in December last year.
The decision to hold the rate steady is hence to counter elevated inflation risks and support the country’s ongoing economic recovery efforts.
