The Bank of Ghana's (BoG) Monetary Policy Committee (MPC) has decided to keep the policy rate unchanged at 27%, they announced in a communiqué, an usual approach of often holding press briefings to announce such decisions.

This follows a previous reduction from 29% in September 2024. The move is intended to stabilise inflation expectations and manage fluctuations in the exchange rate.

The decision was made after the MPC assessed the latest economic conditions in the country.

“Inflation projections show a slightly elevated profile driven by high and unstable food prices, pass-through of previous exchange rate pressures, fuel prices, and utility tariff adjustments. The price increases in food items have been steep in the course, and together with a fast-paced depreciating currency earlier on in the year, they have altered the inflation trajectory and stalled the disinflation process," the MPC said in a press statement to announce the rate on Friday, November 29, 2024.

According to the committee, it was observed that the upcoming elections and increased demand for foreign currency have temporarily caused the exchange rate to weaken, deviating from the country’s economic fundamentals.

However, it expects the recent recovery of the cedi to continue as election-related uncertainties fade and the central bank boosts its foreign currency reserves.

The committee also emphasised that current policies are aligned with the ongoing IMF program, highlighting the importance of addressing issues like the consistent depreciation of the cedi to prevent long-term inflation pressures.

“At the time of the last MPC meeting, average inflation forecast a year ahead, which stood at 19.0 percent, has increased slightly to 20.1 percent at this forecast round. The horizon for inflation to get back within the target band of 6–10 percent has slightly shifted forward to Q42025 from the original forecast period of Q32025.

In the near term, strengthening of the currency will augur well for future price developments. Under the circumstances, the Monetary Policy Committee decided to keep the policy rate unchanged at 27 percent," the communiqué added.

Inflation rose slightly in October 2024, reaching 22.1%, up from 21.5% in September. This increase was fuelled by higher prices for both food and non-food items.

Although the government aims to reduce inflation to 15% by the end of the year, achieving this target seems challenging with just a month remaining and significant risks still in play.