BoG MPC Votes to Keep Policy Rate at 14% Amid Inflation Pressures
Monetary Policy Committee unanimous decision, citing external risks and rising prices.
The Bank of Ghana’s Monetary Policy Committee has decided to keep the policy rate at 14% for now. All seven members voted to maintain the rate, marking the third consecutive hold.
The decision came after a review of inflation trends and external economic conditions. Members pointed to rising fuel and food prices, shipping costs, and the potential impact of El Niño weather patterns. One member warned that these factors could increase imported inflation and strain the exchange rate.
The committee emphasized the need to monitor inflation persistence, especially non-food inflation driven by utility tariff adjustments and domestic petroleum prices. They argued that holding the rate would allow time to assess how external shocks affect the medium-term outlook.
The Bank of Ghana released the individual member decisions in its policy document. While most cited external risks, some expressed cautious optimism that inflation might ease. The focus remains on stabilizing prices while managing economic pressures.
