The Monetary Policy Committee of the Bank of Ghana (BoG) has kept the policy rate at 29%.
Addressing the media, Governor of the BoG, Dr. Ernest Addison noted that the Committee took the decision to help keep inflation stable.
He explained that the latest forecast shows a slightly elevated inflation profile on account of recent exchange rate pressures and adjustments in transportation fares.
According to Dr. Addison, the projections show that inflation will remain within the monetary policy consultation clause of 13-17% at the end of the year.
“These forecasts are contingent on sustaining the tight monetary policy stance, including aggressive liquidity management operations. Given these considerations, the committee decided to maintain the Monetary Policy Rate at 29.0 percent”, he said.
On general macroeconomic conditions, he disclosed that the committee was of the view that while implementation of policies at the macro and structural reform level are consistent and align well with the tenets of the International Monetary Fund (IMF)-supported programme, there is the need to ensure that the recent depreciation of the currency does not become embedded into the pricing behaviour of businesses and on inflation expectations.
He stated that the strong reserve build-up of about $2.0 billion since the beginning of the IMF programme, the strong disinflation process, significant progress on fiscal policy consolidation, positive current account balances, and the good progress on the external debt restructuring process, have all worked together in concert to deliver enough buffers to support the exchange rate.
On fiscal policy, he announced that expenditures outpaced revenue growth in the first quarter, reflecting the frontloading of Independent Power Producers arrears payments.
He advised that maintaining strict fiscal discipline for the rest of the year will be crucial to strengthen confidence in the economy.
Latest Stories
-
35th CIMG Awards: Full list of winners
53 mins -
The Multimedia Group wins big at CIMG Awards 2023
2 hours -
Bernard Mornah wins PNC flagbearship race
2 hours -
Video: Confusion at PNC National Executives election
3 hours -
Rapper E.L. joins King Promise as Guinness Accravaganza headliner for September 21 showdown
4 hours -
PNC Congress: Bernard Mornah leads in Greater Accra Region
4 hours -
Reject violence, divisive rhetoric, embrace peace ahead of elections – Bawumia appeals to Ghanaians
4 hours -
SEFF’s debut single ‘Father’ sets stage for bold new talent
5 hours -
Super typhoon Yagi kills four in Vietnam
6 hours -
Hollard Insurance-UENR Mentoring Day: Students urged to let hard work, integrity shine to advance career
6 hours -
2024/25 GPL: Vision FC opens campaign with draw against Berekum Chelsea
6 hours -
If Baba Yara pitch was good, Mumin clears the ball – Laryea Kingston
6 hours -
GPL 2024/25: Samartex begin title defence with draw against Dreams FC
7 hours -
Financing road construction and maintenance through a special fuel levy: A sustainable solution for Ghana’s road infrastructure
7 hours -
Ghana Celebrity Impact Awards 2024 launched to honor positive social influence
7 hours