The Bank of Ghana (BoG) has commenced its regular Monetary Policy Meetings from Wednesday, November 20, to Friday, November 22, 2024, to assess the current state of the economy and determine the appropriate policy measures moving forward.
This meeting is part of the central bank’s ongoing effort to review economic trends, inflation dynamics, and other key indicators affecting the country’s financial stability.
The 121st meeting of the Monetary Policy Committee (MPC) will focus on reviewing current inflation levels, economic growth projections, the stability of the local currency, and overall economic conditions.
One of the key objectives of this meeting is to evaluate the impact of previous monetary policy actions on inflation and lending rates, as well as to make adjustments as necessary to promote economic growth while managing inflationary pressures.
In its previous meeting in September 2024, the Bank of Ghana made a significant move by reducing the Monetary Policy Rate (MPR) to 27%, marking the second rate cut since 2021.
This was a strategic decision following a period of tight monetary policy aimed at controlling high inflation, which had escalated earlier in the year due to both global and domestic factors.
The MPR had previously been set at 29% for nine months, following a reduction from 30% in January 2024, after the central bank’s aggressive approach to managing inflation in the early part of the year.
The recent rate cut, which aims to provide some relief to borrowers and businesses, comes as the economy faces various challenges. It is expected to encourage credit flow, lower borrowing costs, and stimulate economic activities, especially in the final months of 2024.
The move has been welcomed by many industry experts and businesses, with hopes that further reductions may be considered to create a more favorable environment for investments and business expansion as the year draws to a close.
The BoG’s decision to lower the MPR also comes in light of an improved economic outlook for Ghana, as inflation has been gradually brought under control.
However, challenges remain, particularly with exchange rate volatility, global supply chain disruptions, and fiscal policy adjustments, all of which are factors that the central bank is closely monitoring.
Industry observers are eagerly awaiting the announcement of the updated MPC rate on November 25, 2024, to gauge the bank’s stance on future economic conditions.
Many expect the BoG to continue its cautious approach to monetary policy, potentially reducing the MPR further to support growth and stabilize prices heading into the new year.
