Dr. Ernest Addison, the governor of the Bank of Ghana (BoG) and the chairman of the Monetary Policy Committee (MPC), has stated that the policy rate has been raised to 27%.
On Monday, November 28, Dr. Addison stated that inflation has remained high while speaking at the MPC press conference in Accra.
Pressure on food prices and the weakening of the Cedi are the main factors behind this.
He stated that growing inflation was the cause of the decline in consumer confidence.
“According to the inflation prediction, inflation is expected to peak in the first quarter of 2023 and level out at about 25% by the end of the year. This prediction is dependent on maintaining a restrictive monetary policy stance and using instruments to reduce excess liquidity in the economy.
“However, there are a few forecasting concerns that would need to be kept an eye on, such as additional pressures from the anticipated VAT hike and pressures from exchange rates. The key will be to maintain constant watch on the development of these potential price pressures in the outlook. The Bank of Ghana’s Governor, Dr. Ernest Addison, said.
The Committee believes that there are still significant upside risks to the inflation outlook, he continued. The Committee consequently agreed to raise the policy rate by 250 basis points to 27.0% to continue to anchor inflation expectations.
Source: newsthemegh.com