The Bank of Ghana’s Monetary Policy Committee has decided to keep the interest rate at 27 percent.In its final meeting for the year, the Bank explained that the time for inflation to fall within the target range of 6–10 percent has been pushed back to the last quarter of 2025 instead of the earlier prediction of the third quarter of the same year.

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“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 statement said.The committee noted that inflation is expected to remain high due to rising food prices, the impact of earlier currency depreciation, increases in fuel costs, and adjustments to utility tariffs.

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It explained that the sharp rise in food prices this year, combined with the earlier rapid drop in the value of the cedi, has disrupted efforts to bring inflation down and slowed progress in reducing price increases.“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”, it said.

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