The Monetary Policy Committee of the Bank of Ghana has to keep the policy rate unchanged at 27 percent.

The BoG in statement after its last meeting for the year explained that the horizon for inflation to get back within the target band of 6 - 10 percent has slightly shifted forward to Quarter four of 2025 from the original forecast period of Quarter three of 2025.

“In the near-term, strengthening of the currency will augur well for future price developments. Under the circumstances, the Monetary Policy Committee decided to keep the policy rate unchanged at 27 percent”, the statement said.

It added that inflation projections show a slightly elevated profile driven by high and unstable food prices, pass-through of previous exchange rate pressures, fuel prices and utility tariff adjustments.

According to the committee, the price increases in food items have been steep in the course and together with a fast-paced depreciating currency earlier on in the year have altered the inflation trajectory and stalled the disinflation process.

“At the time of the last MPC meeting, average inflation forecast a year ahead which stood at 19.0 percent has increased slightly to 20.1 percent at this forecast round”, it said.