Monetary Policy Committee begins 116th meeting to assess economy

The Monetary Policy Committee of the Bank of Ghana has commenced a review of developments in the economy to announce its next policy stance at a time of continued disinflation figures.

The meeting which begun yesterday is expected to end on Friday, January 26, 2024.

The 116th meeting of the Monetary Policy Committee is to review developments in the economy and take the necessary steps to ensure financial and economic stability.

The policy rate currently stands at 30 percent after it was maintained during the last meeting in November.

But there is pressure of the on the Central Bank to cut the rate to signal an easing cycle in 2024 to further push lending rates downwards.

As the review commences, the business community wants more to be done for a cut in the rate.

Governor of the Bank of Ghana, Dr. Ernest Addison has been reacting to the outlook of the monetary policy stance for 2024 amidst these concerns of aggressive policy tightening.

The monetary policy rate is of keen interest to businesses, as it determines the rate at which the Bank of Ghana lends to commercial banks, and subsequently influences the interest rate on loans.

He notes that the risks to inflation are still lingering, thus the decision to address current inflationary pressures.

Already, Fitch Solutions is projecting a policy rate reduction of 800 basis points bringing the rate down to 22 percent by end of 2024.