Policy rate maintained at 17%

Governor of BoG, Dr. Ernest Addison

The Bank of Ghana has maintained the monetary policy rate at 17.0 per cent.

The decision was reached at the 83rd meeting of the Monetary Policy Committee (MPC) on Monday, July 23.

The policy rate has reduced since January, at 20 per cent. It came to 18 per cent in March and reduced by 100 basis points to 17 per cent in March.

Governor of the Bank Dr Ernest Addison, who is also the Chairman of the Committee, told journalists that despite the latest decision, economic developments are being monitored.

“The Committee stands ready to take the appropriate policy measures to promptly address any potential threats to the disinflation path.”

The latest decision comes on the back of a marginal rise in inflation from 9.8 per cent in May to 10.0 per cent in June.

Credit to the private sector at the end of June, by the records, also grew by 5.7 per cent as compared to 2.4 per cent in March at the last MPC meeting.

“Overall, the financial soundness indicators of the banking industry have improved moderately since the last MPC meeting, although pockets of weaknesses remain.”

Dr Addison said the decision was mainly influenced by the global outlook, which he described as “uneven”.

“While the rebound in the United States continues, activity in the Euro area, Japan and the United Kingdom has been sluggish.”

The next MPC meeting is scheduled for September 18-20.

It will conclude on Monday, September 24, when a decision on a new policy rate will be announced.


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