The Bank of Ghana (BoG) has held its monetary policy rate steady at 27% to address heightened inflation risks and sustain the country’s economic recovery efforts.
This decision follows Ghana’s inability to meet its 2024 end-year inflation target of 15%, with inflation rising to 23.8% in December.
Speaking at the first Monetary Policy Committee press briefing for 2025, held at the BoG’s new headquarters, Governor Dr. Ernest Addison emphasized the need for a cautious approach amid persistent inflationary pressures and global economic uncertainties. The Central Bank remains committed to stabilizing the economy and managing inflation effectively.
“The inflation profile remains elevated largely driven by food price movement, especially, in the last quarter of the year. The climate factors including dry spells in some parts of the food-growing communities of the country and the last onset of rains negatively affected production.
“While the supply chain weakens generally affected food prices. While the inflation outturn for 2024 deviated from the target, it is expected that the disinflation process will resume contingent on renewed efforts at fiscal consolidation which is anticipated in the new administration economic policy agenda and the yet-to-be-presented 2025 budget statement.
“The bank’s latest inflation focus shows a steady decline and returns to the path of disinflation with an extended time of rising in achieving the medium target of 8+- 2%. Under the circumstances the committee decided to keep the monetary policy rate unchanged at 27%,” he stated.
