Bank of Ghana holds policy rate at 29 per cent

The Bank of Ghana (BoG) has kept its Monetary Policy Rate at 29%, citing slight inflation pressures from recent exchange rate issues and transportation fare adjustments.

Governor Dr. Ernest Addison announced that inflation is projected to remain within 13-17% by year-end. The decision follows a review of global and domestic economic developments and risks.

The interbank average rate rose to 28.68% in April 2024, while average lending rates slightly decreased to 31.25%. The banking sector is recovering, with total assets up 28.8% to GHS306.8 billion. International reserves increased to $6.59 billion.

However, fiscal expenditures outpaced revenue growth, necessitating strict fiscal discipline.