By The Bank of Ghana (BoG) has declared its decision to maintain the Monetary Policy Rate (MPR) at 29% for the second time this year.
Dr. Ernest Addison, the Governor of the Bank of Ghana, announced this decision during the 118th monetary policy announcement on Monday, May 27, 2024.
Dr. Addison emphasized that the aim of this decision is to uphold the current tight monetary policy stance and reinforce liquidity management operations.
Highlighting positive economic indicators, such as a substantial increase in foreign exchange reserves to approximately $2 billion since the inception of the IMF program, significant progress in fiscal policy consolidation, and advancements in external debt restructuring, Dr. Addison underscored the rationale behind maintaining the rate.
Additionally, he acknowledged a slight uptick in inflation, particularly driven by adjustments in transportation services, but expressed confidence that inflation would remain within the monetary policy target.
This decision implies that commercial banks will continue to utilize the 29% rate as a benchmark for lending, potentially influencing borrowing costs and overall economic growth.
“The strong build-up is about 2 billion dollars since the beginning of the IMF programme, the strong dissemination process, significance process of the fiscal policy consolidation, positive current economic balances and the good process of the external debt structuring have all worked in concept to the exchange rate.
