The Bank of Ghana (BoG) Monetary Policy Committee has maintained the monetary policy rate at 29%.
This is the second time the rate has been retained at 29% in 2024.
This decision means that commercial banks will continue to use the 29% rate as a reference for lending, which may impact borrowing costs and economic growth.
Addressing the media, the Governor of the BoG, Dr. Ernest Addison, noted that the committee decided to control prices and keep inflation stable.
Inflation for April 2024 declined marginally to 25.0% from the 25.8% recorded in March 2024.
This decision was made during the 118th monetary policy announcement on Monday, May 27, 2024.
According to Dr Addison, the decision to maintain the rate aims to sustain the tight monetary policy stance and step up liquidity management operations.
He cited several positive economic indicators, including a strong build-up of foreign exchange reserves of about $2 billion since the beginning of the IMF programme, a significant process of fiscal policy consolidation, and a good process of external debt structuring.
The Governor also noted that the latest forecast shows a slightly elevated inflation closer, with adjustments in transportation services, but expressed confidence that inflation will remain within the monetary policy target.
“The strong build-up is about 2 billion dollars since the beginning of the IMF programme, the strong dissemination process, significance process of the fiscal policy consolidation, positive current economic balances and the good process of the external debt structuring have all worked in concept to the exchange rate.