Saturday, June 15, 2024

Ghana: MPC Maintains Policy Rate of 29.5 Percent…. Cites Fall in Local, Global Inflation

The Monetary Policy Committee (MPC) of the Bank of Ghana has maintained the Monetary Policy Rate (MPR) at 29.5 per cent on the back of local and global inflation.

The policy rate is basically the rate at which the BoG borrows to commercial banks in the country, which serves as benchmark for the banks to lend to the public.

According to the Committee, the underlying inflationary pressures were easing, as the bank’s core measure of inflation declined for the fourth consecutive month.

“Core inflation, which excludes energy and utility prices, declined to 41.7 per cent in April 2023, from 44.6 per cent in March, and 52.0 per cent in February. Similarly, the banking sector’s inflation has declined by 14.5 per cent, while food inflation also fell by 11.1 per cent,” the MPC stated.

Addressing the media in Accra yesterday after the 112th regular meeting of the MPC, days after Ghana clinched the $3 billion Extended Credit Facility with the International Monetary Fund for balance of payment support and to restore macroeconomic stability, Dr Ernest Addison, who is the Chairman of the MPC, said the MPC noted the significant decline in headline inflation from the beginning of the year of 12.0 per cent.

He said the percentage of items in the Consumer Price Index basket with inflation more than 50 per cent and above was receding, which was an indication a strong return to the disinflation path, adding that core inflation, excluding energy, was easing at a faster rate.