Dr. Johnson Asiama, Bank of Ghana Governor
The Monetary Policy Committee (MPC) of the Bank of Ghana has raised the policy rate by 100 basis points, increasing it from 27% to 28%.
This decision follows a reduction in the prime rate from 29% to 27% in September 2024.
Since last year, the Bank of Ghana has reduced rates by a total of 300 basis points, with the key rate expected to reach 23% by the end of the year.
Announcing the new rate, the Governor of the Central Bank, Dr. Johnson Asiama, stated that the increase is aimed at addressing inflationary pressures in the economy.
The decision was made following a majority vote by the committee.
Dr. Asiama noted that business and consumer confidence has improved significantly in a short period.
He attributed this to timely interventions, such as the Gold for Reserves program and negotiations with the IMF, which have fostered a more favorable business and consumer environment.
He also mentioned that the Central Bank is actively working to monitor undercapitalised banks and restore their solvency.
“By a majority decision, for the first time, the committee decided to raise the monetary policy rate by 100 basis points to 28 percent. This is meant to anchor the disinflation process. As inflation becomes firmly anchored, and as we observe the next inflation readings and see declines, the committee will reassess the scope for a gradual easing in the policy stance,” he stated.
SP/MA
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