The Bank of Ghana (BoG) has kept its monetary policy rate unchanged at 27%.
The decision to hold the rate steady is to counter elevated inflation risks and support the country’s ongoing economic recovery efforts.
It also comes after Ghana failed to meet its 2024 end-year inflation target of 15% as the rate inched up to 23.8% in December last year.
Addressing the first Monetary Policy Committee press briefing for 2025, at its new headquarters—Bank Square—Governor, Dr. Ernest Addison said, the Central Bank will continue with its cautious stance in the face of underlying inflationary pressures and global economic uncertainties.
The inflation profile remains elevated largely driven by food price movement, especially, in the last quarter of the year. The climate factors including dry spells in some parts of the food-growing communities of the country and the last onset of rains negatively affected production.
“While the supply chain weakens generally affected food prices. While the inflation outturn for 2024 deviated from the target, it is expected that the disinflation process will resume contingent on renewed efforts at fiscal consolidation which is anticipated in the new administration economic policy agenda and the yet-to-be-presented 2025 budget statement.
The bank’s latest inflation focus shows a steady decline and returns to the path of disinflation with an extended time of rising in achieving the medium target of 8+- 2%. Under the circumstances the committee decided to keep the monetary policy rate unchanged at 27%,” he stated.
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