The Bank of Ghana has kept its benchmark policy rate unchanged at 14 percent as improved fiscal performance, stronger external buffers and resilient domestic activity offset renewed inflation risks from higher oil prices and global supply disruptions.
The Bank of Ghana’s Monetary Policy Committee is weighing whether to maintain its 14 percent policy rate as rising inflation, pressure on international reserves and a sharp increase in global oil prices complicate the outlook for monetary policy.
The Bank of Ghana’s (BoG) Monetary Policy Committee (MPC) will begin its 132nd meeting today, Wednesday, September 23, with markets awaiting Thursday’s decision on whether the central bank will maintain its 14 percent policy rate or resume its easing cycle.
Despite renewed investor confidence in Ghana’s domestic capital market, PwC Ghana has warned that the country lacks a strong pipeline of businesses prepared to list on the Ghana Stock Exchange (GSE) - potentially limiting the market’s ability to absorb growing pools of long-term capital.
The Securities and Exchange Commission (SEC) is pushing for full integration of Ghana’s mobile-money ecosystem with the capital market, a move that could enable citizens to buy government bonds and other investment products directly from their mobile wallets.
Ghana is targetting an increase in its non-oil tax-to-GDP ratio of between 18 and 20 percent by 2027, as government steps up efforts to broaden the tax base, improve compliance and strengthen domestic revenue mobilisation.
Renewed weakness in the cedi and higher fuel prices are expected to push inflation higher in September - potentially limiting the scope for further monetary easing by the Bank of Ghana (BoG), according to Apakan Securities.
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