Bank of Ghana’s MPC begins review of economy today to guide policy direction

The Monetary Policy Committee (MPC) of the Bank of Ghana begins its 125th regular meeting today, Monday, July 28, to review recent macroeconomic developments and assess the country’s economic outlook.

The three-day meeting will focus on evaluating key economic indicators such as inflation trends, exchange rate movements, and the overall stability of the financial sector.

At its previous meeting, the Bank maintained the policy rate at 28%, a decision Governor Dr. Johnson Asiama described as a cautious stance in light of lingering inflationary pressures despite notable improvements in currency stability and broader macroeconomic performance.

Market analysts and financial observers are closely watching this week’s meeting, especially after the MPC held an emergency session on Thursday, July 17.

Following that meeting, the Committee stated that confidence in Ghana’s economy is returning, with inflation expectations broadly anchored and external buffers significantly strengthened.

The MPC’s deliberations will culminate in a press conference scheduled for Wednesday, July 30, where the Committee is expected to announce its policy rate decision and provide insights into the Bank’s outlook on macroeconomic conditions.

The Monetary Policy Rate (MPR), which serves as the benchmark interest rate for commercial banks, is a critical tool used by the Bank to steer inflation and support economic stability.

Any decision to adjust the rate could have implications for borrowing costs, investment decisions, and consumer prices.