The Bank of Ghana (BoG) has decided to maintain the policy rate at 29 per cent, as announced by the Monetary Policy Committee (MPC) led by Governor Dr. Ernest Addison on Friday, July 26, 2024.
This marks the third consecutive time the Central Bank has kept the rate steady.
The policy rate was last adjusted in January 2024, when it was reduced by 100 basis points (1 per cent) to the current 29 per cent. Since then, the BoG has opted to maintain this rate, following a thorough review of the country’s macroeconomic developments over the past two months.
By keeping the policy rate stable, the BoG aims to ensure that commercial banks’ lending rates to businesses remain unchanged, providing a consistent financial environment for corporate borrowers. This decision, announced during the 119th MPC press briefing, underscores the Central Bank’s ongoing efforts to balance economic growth.
Recent data from the Ghana Statistical Service (GSS) indicates a slight decline in headline inflation to 22.8 per cent from 23.1 per cent in May, continuing the disinflation trend observed since January 2023. The Central Bank projects that inflation will stay within the monetary policy consultation clause of 13-17 per cent by the end of the year.
