The Monetary Policy Committee of the Central Bank has reduced its policy rate from 30 to 29 percent.

The policy rate is indicative of the rate at which the Central Bank lends to Commercial Banks in the country.

Addressing the media after the 116th Monetary Policy Committee (MPC) meetings, the first for the year 2024, the Governor of the Bank of Ghana (BoG), Dr. Ernest Addison stated that several factors have supported the disinflation process in the country.

According to him, the tightening monetary policy stance throughout 2023, favourable international crude oil prices has led to stable ex-pump prices and transportation costs, and relative stability in the exchange rate.

“The latest forecast suggests that the disinflation process will continue, and headline inflation is expected to ease to around 13-17 percent by the end of 2024, before gradually trending back to within the medium-term target range of 6-10 percent by 2025.

“These forecasts notwithstanding, there are upside risks to the inflation outlook and there is need for strict implementation of the 2024 budget and a tight monetary policy stance to sustain the disinflation process. 24.

He continued: “The Committee noted the emerging recovery but sees the need to maintain a strong policy stance to consolidate the disinflation gains. Under these circumstances, the Committee decided to reduce the Monetary Policy Rate by 100 basis points to 29 percent.”

Source: Ghana/