The Bank of Ghana’s Monetary Policy Committee (MPC) has started its 123rd meeting today, which will focus on evaluating the current economic conditions and determining measures to ensure financial stability. This crucial three-day meeting marks the first under the leadership of newly appointed Governor Dr. Johnson Asiamah. The committee will conclude its discussions on Friday, March 28, 2024, with a major policy announcement.
Inflation has been a persistent challenge for the Central Bank, with rates hovering in the low twenties for over two years. In 2023, the inflation rate was recorded at 23.2%, and it slightly rose to 23.8% in 2024. As of February 2025, inflation remains high at 23.1%. The MPC previously maintained a policy rate of 27% in January 2025 to curb inflationary pressures, but the committee now faces a more complicated situation with the persistent inflation and ongoing debt concerns.
Another challenge for the MPC is the declining Treasury bill rates, which have raised concerns about liquidity management and the level of investor confidence in government securities. As the government aims to reduce inflation to 11.9% by the end of the year and targets a real GDP growth rate of 4.4%, both businesses and economic analysts are keenly awaiting signals from the MPC regarding potential interest rate changes and other monetary interventions that could impact the broader economy.
As the MPC continues its deliberations, the big question remains: Will the Bank of Ghana maintain its cautious stance to address inflation and global economic uncertainties, or will it shift towards policies that foster economic growth despite ongoing financial pressures? The outcome of this meeting will be pivotal in shaping the country’s economic future.
source: citi newsroom