Dr. Ernest Addison
In a notable display of stability and strategic economic foresight, the Bank of Ghana (BoG) has opted to retain the policy rate at 29%, as reiterated by the Monetary Policy Committee (MPC) under the astute leadership of Governor Dr. Ernest Addison.
The announcement was made on Friday, July 26, 2024, marking the third consecutive instance where the Central Bank has upheld the policy rate at its current threshold.
This decision follows a meticulous assessment of the country’s macroeconomic trajectory spanning the preceding two months. Despite an earlier adjustment with a 100 basis points (1%) reduction in January of the current year, the 29% policy rate remains unaltered, reflecting the BoG’s measured approach towards sustaining financial equilibrium and fostering optimal conditions for economic growth.
The steadfast maintenance of the policy rate is poised to engender a sense of predictability within the financial sector, thereby envisaging a scenario where commercial banks’ lending rates to businesses remain stable.
This unwavering stance by the Central Bank is instrumental in creating a conducive environment for corporate borrowers, exemplifying a commitment to facilitating sustained economic activity and business viability.
Governor Dr. Ernest Addison, in his address during the 119th MPC press briefing, underlined the rationale behind the decision, emphasizing the nuanced endeavor to navigate the delicate balance between stimulating economic expansion and curbing inflationary pressures.
The Central Bank’s steadfast adherence to the 29% policy rate underscores a judicious strategy aimed at safeguarding the nation’s economic resilience amidst prevailing market fluctuations and global uncertainties.
By Vincent Kubi