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 central bank sets in order to influence the evolution of the main monetary variables in the economy like consumer prices, exchange rate or credit expansion, among others.
The inflation rate 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.
The decrease in the general inflation rate can be attributed to the marginal drop in food inflation, the Statistician said.
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.
In the regional differentials, the Eastern Region recorded the highest rate of food inflation while Upper East region recorded the lowest rate.
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