BoG holds policy rate at 16 percent

The Monetary Policy Committee of the Bank of Ghana has maintained its policy rate for the second time running citing inflationary pressures that must be controlled.

Speaking at the MPC press briefing on Monday, Dr Ernest Addison said the MPC’s decision became necessary to sustain the gains the committee had made over the past two or so years.

According to him, the decision was influenced by the accommodative monetary policy stance by most advanced economies which broadly offers some scope for favorable global financing conditions.

April’s inflation rose to 9.5 percent, the third month since the beginning of the year that consumer prices have gone up.

Dr Ernest Addison explaining the decision by the Bank of Ghana to maintain the policy rate said, “On the inflation outlook the committee noted that the recent exchange rate we pass through has slowed the disinflation process leading to a slightly elevated inflation profile as showed in the latest forecast, however, core inflation remains subdued and inflation expectations clearly……under the circumstances the committee decided to keep the monetary policy rate unchanged at 16%, the committee will continue to closely monitor both global and domestic developments and stands ready to take appropriate measures if necessary to maintain price stability.”