play videoBank of Ghana Governor, Dr. Ernest Addison
The Monetary Policy Committee of the Bank of Ghana has maintained the policy rate at 19 percent after its 107th meeting.
Governor of the central bank, Dr. Ernest Addison explained the decision is due to the current inflationary trends which are expected to decline in the coming months.
He added that the
Read full articlecentral bank will however continue to monitor macroeconomic developments and will act decisively.
"The Committee noted that inflation has persisted on an elevated path. A detailed review of the consumer basket shows that although initially driven by supply-side shocks, the initial relative price changes have broadened to almost all the items in the consumer basket," Dr Addison explained.
"The Committee expects that the macroeconomic framework that will underpin an agreed IMF-supported programme will present a stronger coordinated monetary and fiscal policy framework that will anchor stability and prevent a wage-price spiral, which will lead to inflation becoming more entrenched," he added.
"Based on the above assessments, the Committee was of the view that it will be appropriate to pause and observe the impact of the recent monetary policy measures already taken," the governor added.
