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The Monetary Policy Committee (MPC) of the Bank of Ghana has decided to retain the Monetary Policy Rate (MPR) at 29.5 per cent, citing a decline in both local and global inflation. The policy rate serves as a benchmark for commercial banks to lend to the public. Despite the inflationary pressures easing, the Committee noted that its core measure of inflation had declined for a fourth consecutive month. The most recent decline in Ghana’s headline inflation rate was at 12% earlier in the year. Dr. Ernest Addison, Chairman of the MPC, cited the tight monetary policy and new liquidity management methods as aiding the disinflation process. Additionally, on the international front, Dr. Addison noted that global headline inflation continues to ease in various economies, resulting from monetary policy tightening and falling energy and food prices.

Banking consultant, Nana Otuo Acheampong commended the decision of the MPC, stating that the policy rate was more favourable for the current economic circumstance, and he wasn’t caught off-guard by the retention of the MPR. The Bank of Ghana signed a Memorandum of Understanding for the zero financing to the budget which will aid eliminate fiscal dominance and allow for faster disinflation is expected to return to the target band of below 10 per cent.