At its 26–29 January meeting, the Monetary Policy Committee of the Bank of Ghana decided to keep the policy rate steady at 14.50%, marking the fifth consecutive hold.
The decision reflected the Bank’s assessment that despite inflation accelerating recently, it expects it to return to target in the second quarter of this year. Inflation jumped to 10.4% in December 2020 (November: 9.8%) as a result of quicker food inflation, thus landing above the Bank’s target range of 6.0%–10.0%. Although short-term risks to inflation are also emerging from fiscal expansion and rising oil prices, they remain broadly contained according to the Bank, enabling it to maintain its accommodative stance.
aminej on 27 Feb 21The economic factors in Ghana are a little bit worrying since inflation is really high (10.4%), interest rates at 14.50%. It shows that the Ghanean economic is really volatile and can affect demand and competitivity within the country if not maintained controlled