Josiah
The Bank of Ghana (BoG) has announced that it will maintain its Monetary Policy Rate (MPR) at 29% for the second time this year.
This decision was made by the Governor of the Bank of Ghana, Dr. Ernest Addison, during the 118th monetary policy announcement on Monday, May 27, 2024.
Dr. Addison explained that the decision to keep the rate steady is aimed at sustaining a tight monetary policy stance and enhancing liquidity management operations. He highlighted several positive economic indicators, including a substantial build-up of foreign exchange reserves, approximately $2 billion since the commencement of the IMF programme, significant progress in fiscal policy consolidation, and successful external debt restructuring.
The Governor also noted that the latest forecasts show slightly elevated inflation, primarily due to adjustments in transportation services, but he expressed confidence that inflation will remain within the monetary policy target.
This decision implies that commercial banks will continue to use the 29% rate as a benchmark for lending, which could influence borrowing costs and economic growth.
“The strong build-up of about $2 billion in foreign exchange reserves since the beginning of the IMF programme, the significant progress in fiscal policy consolidation, positive current economic balances, and successful external debt restructuring have all contributed to stabilizing the exchange rate,” Dr. Addison stated.
Source:Omanghana.com
