The policy rate of the Bank of Ghana (BOG) remains at 27% due to improved global economic conditions and higher than projected growth in the last three quarters of 2024.
Governor of the Bank of Ghana, Dr. Ernest Addison, who announced this at a press conference after the 122nd Monetary Policy Committee (MPC) meeting in Accra said global inflationary pressures have eased leading to a reduction in monetary policy stance in several countries.
Among other factors, he mentioned that the maiden press briefing in 2025 include stronger than projected growth and generally improved macroeconomic conditions spilling over positively to the banking sector.
“Under the circumstances, the bank decided to keep the monetary policy rate unchanged at 27.0%. The bank’s latest inflation forecast shows a steady decline and returns to the path of disinflation with an extended time horizon of achieving the medium-term target of 8+ percent”.
He said to ensure positive development in the banking sector, the Bank of Ghana will ensure that banks with capital gaps continue to adhere to their committed recapitalisation plans to shore up solvency.
Dr. Addison further noted that though the cedi came under intermittent pressures during the first three quarters of the year, it however regained some value in the last quarter of the year.
“The latest data from the Ghana Statistical Service showed that real GDP expanded at an annual rate of 6.3 percent during the first three quarters of 2024, relative to 2.6 percent during the corresponding period in 2023”.
“The ease in inflationary pressures was largely supported by subdued oil prices and the gains from tighter monetary stances adopted earlier” he stated.
By Ebenezer K. Amponsah