The Bank of Ghana (BoG) has announced a one percent reduction in its Monetary Policy Rate, lowering the reference rate for lending from 30 to 29 percent after six months.
The rate, static at 30 percent since July 2023 to control inflation, responds to calls from the business community to stimulate operational activities and enhance credit to the private sector.
During the 116th monetary policy announcement, the Bank of Ghana highlighted a significant decline in inflation, a stable currency rate, and robust economic growth globally and domestically as the basis for the rate cut.
Governor Dr. Ernest Addison affirmed the effectiveness of their inflation-targeting framework but emphasized continuous monitoring and appropriate responses to potential inflation risks.
Dr. Addison stated, “Global inflation prompted a pause in monetary policy tightening across key economies.
Although major central banks have halted major policy rate hikes due to declining inflation, tight global financing conditions persist.
The uncertain global outlook, coupled with geopolitical tensions and potential spillovers to the commodities market, remains a significant risk factor for most economies.”
