The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) says it has observed a broad recovery in the economy.
Chair of the committee, Governor Dr Ernest Addison assured that the committee would further take steps to maintain the recovery.
As part of efforts to maintain the recovery and experience more of it, the Committee has decided to keep 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.
He further explained that the committee decided to keep the policy rate at 30 percent because although the inflation rate is dropping, it is still high.
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.
Raelier, the Finance Minister Ken Ofori-Atta recently said that the government was determined to maintain discipline in order to keep the economy stable.
Mr Ofori-Atta said the government had turned the corner relative to the economic challenges when it successfully completed the first review of the 3-year 3 billion International Monetary Fund External Credit Facility (IMF-ECF) programme.
“We turned the corner when we completed the IMF first review,” he told Parliament while presenting the 2024 budget statement on Wednesday, November 15.
He further assured that the government is poised to “maintain stability and keep growing. and ensure increased growth, currency stability”
“We turned the corner when inflation started declining from 54 1 in December to 35.2 in October 2023, he added.
“The recovery is indeed real and is here to stay,” he further assured.