The Bank of Ghana's Monetary Policy Committee (MPC) has decided to maintain the policy rate at 29.5%, marking the first time since July 2022 that it remains unchanged.

Governor of the Bank of Ghana, Dr Ernest Addison explained that the tight monetary policy through additional liquidity management operations to address excess liquidity conditions in the market, relative stability in the local currency, and easing of ex-pump petroleum prices have supported the disinflation process.

He added that the Bank of Ghana has signed the Memorandum of Understanding on zero financing to the budget to eliminate fiscal dominance and allow for a faster ease in inflation towards the target band.

With an unchanged policy rate, the cost of credit is expected to remain high with the average lending rate going for about 31.5%.

Last week, the International Monetary Fund (IMF) announced that the Bank of Ghana will continue to pursue a tight monetary policy until inflation shows a consistent downward trend.

Under the programme, the focus will be on implementing monetary and exchange rate policies aimed at curbing inflation and rebuilding foreign reserve buffers.

Since July 2022, the policy rate has gone up by 10.5 percent.