The Monetary Policy Committee of the Bank of Ghana (BoG) has chosen to maintain the key lending rate to commercial banks at its current level.

Following their review of economic developments, they have decided to keep the rate steady at 30 percent.

Speaking to the press, Dr. Ernest Addison, the Governor of the Bank of Ghana, highlighted that this decision was based on the positive response of all macroeconomic indicators to previous measures taken to control inflation.

“Given these considerations, the Committee decided to maintain the policy rate at 30.0 percent. The Committee further indicated that while the expectation is for continued disinflation, it stands ready to respond appropriately should inflation deviate from these broad expectations”, he said.

Regarding inflation dynamics, Dr. Addison elaborated that the ongoing commitment to a stringent monetary policy stance and the stability of the exchange rate have played crucial roles in driving the observed disinflation process throughout the year.

He further stated that Headline inflation has decreased by a cumulative 14.0 percent since it peaked at 54.1 percent in December 2022.

Dr. Addison also noted that non-food inflation has experienced a substantial decline of nearly 20 percent, underscoring the overall effectiveness of the monetary policy measures.

“All core inflation measures, monitored by the central bank are trending downwards, indicating continued easing of underlying inflationary pressures. In addition, one-year ahead survey-based inflation expectations seem well anchored”.

He emphasized that although the disinflation process has resumed, it is anticipated to lead to a gradual return within the target range over the medium-term, unless unexpected shocks, increases in global crude oil prices, or adjustments in utility tariffs disrupt this trajectory.

Dr. Addison highlighted that these factors continue to pose risks to the inflation outlook, which will require careful monitoring and management through vigilant monetary policy measures.