The Bank of Ghana (BoG) has decided to maintain its policy rate at 14.5% although inflation has remained above the upper band of the medium-term target of 8±2 percent since September 2021.
The decision has been taken by the Monetary Policy Committee at its last meeting having considered the latest inflation figures.
“The latest forecast shows that inflation would likely remain above target in the near-term, driven by both external and domestic factors, and only return to target in about four-quarters ahead.
“The Committee is of the view that the dynamics associated with the November 2021 policy rate hike are yet to be fully transmitted and expects the decisive implementation of the fiscal correction measures, especially the 20 percent cut in expenditure to help moderate the upside risks to the inflation outlook.
“Under these circumstances, the Committee has decided to keep the policy rate unchanged at 14.5 percent,” part of a release from the Bank of Ghana has announced.
Meanwhile, the Monetary Policy Committee is set to continually monitor the impact of these policy measures and when need will call an extraordinary meeting to re-assess the inflation outlook over the forecast horizon and take the necessary policy decisions accordingly.
Information from the BoG notes that the next Monetary Policy Committee (MPC) meeting is scheduled for 23rd – 25th March 2022.
The meeting will conclude on Monday, 28th March 2022 with the announcement of the policy decision.
