BoG maintains interest rate at 29%
The Bank of Ghana (BoG) has maintained its Monetary Policy Rate (base rate) at 29 percent.
The BoG made a 100 basis points cut in the policy rate to the current 29 percent in January.
The maintenance of the policy rate was announced by the Governor of the Bank of Ghana, Dr Ernest Addison at the 117th Monetary Policy Committee (MPC) press briefing on Monday, March 25, 2024.
The new policy rate follows the review of macroeconomic developments in the country for the past two months by the MPC.
With a maintenance in the policy rate, the lending rate by commercial banks to businesses is expected to remain same with the new policy rate.
According to Dr Addison, the decision by the Committee to maintain the policy rate comes on the back of the marginal but steady decline in the headline inflation to 23.2% in February.
Announcing the rate, Governor Ernest Addison told reporters that risks to inflation are slightly on the upside and will require close monitoring.
“After decelerating sharply in 2023, the pace of disinflation has slowed in the first two months of the year. Although inflation rose slightly in January 2024 and edged down in February, the latest inflation forecast suggests a slightly elevated profile from the possible upward revision in transport fares, adjustment in utility tariffs, higher ex-pump prices, and some pass through of exchange rate depreciation”.
“Overall, risks to inflation are slightly on the upside and will require close monitoring. Given these considerations, the Committee decided to maintain the Monetary Policy Rate at 29%”, the Governor stated.
