The Bank of Ghana’s Monetary Policy Committee (MPC) raised its policy rate by 100 basis points to 28% last week in an effort to curb inflation. In his first MPC press conference, Bank of Ghana Governor Dr. Johnson Asiama explained that the rate hike was driven by ongoing economic uncertainties, largely influenced by external factors, and concerns over rising inflation.
“As inflation becomes more firmly anchored, the Committee will reconsider the possibility of gradually easing the policy stance,” the Governor noted.
Although headline inflation has slightly decreased, Dr. Asiama expressed concerns, highlighting that both food and non-food inflation are significantly higher than expected, and core inflation remains elevated. The policy rate increase followed a 3-2 vote by the MPC members.
As promised, the Governor stated that future decisions will be made public.
