The Governor of the Bank of Ghana, Dr Ernest Addison has clarified the Monetary Policy Committee’s decision to maintain the policy rate at 29 percent at its 119th press conference on July 26.
In his speech, he explained that domestic price developments face uncertainties due to recent exchange rate pressures, increases in utility tariffs, and rising ex-pump fuel prices.
He stated
“ These factors have led to a slightly higher inflation outlook for the year.We expected it to remain within the target range.However, the risks are slightly on the upside”.
Furthermore, Dr Addison emphasised the need to maintain a strong monetary policy stance supported by robust fiscal consolidation efforts to achieve end-of-year inflation targets.
“Considering these factors, the Committee decided to keep the policy rate at 29 percent to stabilize commercial banks and ensuring a consistent financial environment for corporate borrowers
This decision follows a comprehensive review of the country’s macroeconomic developments over the past two months. He added.
source: Joyonline
