BoG to hold emergency MPC meeting today amid calls for rate cut
The Bank of Ghana (BoG) has announced that it will hold an emergency Monetary Policy Committee (MPC) meeting today
According to a notice, the meeting will review developments in the economy over the past two months.
The notice also disclosed that a policy decision of the committee will be announced on Friday, July 20, after the meeting.
The policy rate currently stands at 28 per cent. There has been a strong push by businesses and industry watchers for the policy rate to be reduced.
This is due to the fact that inflation has witnessed a significant reduction over the past months since December last year. Inflation is currently at 13.7 per cent.
Initial engagement with some members of the Monetary Policy Committee has shown some mixed views or reactions. While some are for a policy rate cut, others think the best decision is to still hold on for while looking at current developments on the international market.
The IMF in its latest Staff Report also pushed for some monetary tightening to help bring inflation down to some appreciable levels. The IMF has again revised its end year inflation target from 12 per cent to 8 per cent.
It is not clear whether the Monetary Policy Committee will yield to the current pressure and cut the Policy Rate by a significant margin when it concludes the meeting later this week.
