The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has raised the policy rate by 150 basis points to 29.5%.
The policy rate indicates the interest rate at which the central bank lends to commercial banks in Ghana.
The decision was taken after the committee reviewed the current economic situation as the rate of inflation for February 2023 declined to 52.8%.
The move by Monetary Policy Committee (MPC) is a sign that the central bank does not yet see the country’s economic situation stabilising despite two consecutive months of slowing inflation.
Speaking at the 111th MPC press briefing in Accra on Monday (27 March), the Governor of the BoG, Dr Ernest Addison said: “To place the economy firmly on the path of stability and reinforce the basis for disinflation, monetary policy stance must be tuned firmer to re-anchor inflation expectations toward the medium target.”