Although inflation is dropping, the current rate is still high – BoG explains decision to keep Policy Rate at 30%

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Dr Ernest Addison
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Chairman of the Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) Dr Ernest Addison has observed that although inflation has been dropping, the current rate is still high.

He said the BoG expects the rate to drop further than the current rate. To that end, the MPC has decided to maintain the policy rate at 30 percent.

Dr Addison, while addressing the 115th MPC press conference in Accra on Monday, November 27 stated “The committee has decided to maintain the policy rate at 30 percent until inflation is firmly anchored on a downward trend,” he said.

Dr Addison further stated that the MPC observed broad improvement in the economy. He assured that the improvement will be sustained with tighter fiscal provisions.

The Policy Rate is an interest rate that the  sets in order to influence the evolution of the main monetary variables in the  like consumer prices, exchange rate or credit expansion, among others.

The  for the month of October 2023 dropped to 35.2 percent, the Government Statistician Professor Samuel Annim has announced. The new rate was from 38.1 percent in September 2023.

 – 3News - First In News | Ghana News Updates

The decrease in the general  rate can be attributed to the marginal drop in food inflation, the Statistician said.

 – 3News - First In News | Ghana News Updates

Food inflation in the period was 44.8 percent, while non-food was 27.7 percent

In addition, Inflation for locally produced item was 34.4 percent while imported items was at 34.4 percent from 37.4 percent in last month.

 – 3News - First In News | Ghana News Updates

In the regional differentials, the  recorded the highest rate of food inflation while  region recorded the lowest rate.

 – 3News - First In News | Ghana News Updates

More soon…