BoG set to announce key policy rate decision
The Bank of Ghana (BoG) is set to hold a press briefing later this morning to announce the Monetary Policy Committee’s (MPC) decision on the country’s policy rate, which serves as the benchmark interest rate.
As of November 29, 2024, the policy rate stood at 27%, a level maintained to address persistent inflationary pressures. The BoG’s monetary policy is anchored on maintaining price stability, financial stability, and a sound payment system, with a medium-term inflation target of 8±2%.
The 122nd regular meetings of the MPC, which commenced on Wednesday, January 22, 2025, concluded on Friday, January 24, 2025. The committee’s decision on the appropriate positioning of the policy rate will be communicated during the press briefing today, January 27, 2025, to be addressed by the Chairman of the MPC.
Ghana’s economic landscape remains mixed, with inflation as of December 2024 at 23.8 percent , from 23 per cent the previous month. Challenges such as elevated fuel costs and external pressures have continued to weigh on price stability.
For the first three quarters of 2024 Ghana recorded an impressive average real GDP growth rate of 6.3 per cent, a significant leap from the 2.6per cent recorded during the same period in 2023.
Market analysts and financial experts have mixed expectations regarding the MPC’s decision. Some predict a hold on the current rate to sustain the ongoing disinflationary trend, while others anticipate a slight cut to boost economic activity amid signs of easing inflationary pressures.
The policy rate influences lending rates across banks and other financial institutions, impacting borrowing costs for businesses and households. Today’s decision will therefore be closely watched by stakeholders across the economy for its implications on investment, consumption, and overall economic recovery.
