BoG maintains policy rate at 29%

The Bank of Ghana (BoG) has announced that it will maintain its Monetary Policy Rate (MPR) at 29% for the second time this year.

This decision was made by the Governor of the Bank of Ghana, Dr. Ernest Addison, during the 118th monetary policy announcement on Monday, May 27, 2024.

According to Dr Addison, the decision to maintain the rate is aimed at sustaining the tight monetary policy stance and stepping up liquidity management operations.

He cited several positive economic indicators, including a strong build-up of foreign exchange reserves of about $2 billion since the beginning of the IMF programme, a significant process of fiscal policy consolidation, and a good process of external debt structuring.

The Governor also noted that the latest forecast shows a slightly elevated inflation closer, with adjustments in transportation services, but expressed confidence that inflation will remain within the monetary policy target.

This decision means that commercial banks will continue to use the 29% rate as a reference for lending, which may impact borrowing costs and 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