Policy rate reviewed from 13.5% to 14.5% in November 2021
Inflation figures peak globally due to COVID-19
BoG MPC to announce first policy decision of 2022 on January 31
The Bank of Ghana’s Monetary Policy Committee will from Tuesday, January 25 to Friday, January 28 begin its first scheduled meetings of 2022 to review economic developments of the country.
The 104th meeting of the Committee is expected to entail the initiation of proposals for the formulation of the central banks’ policies, provision of statistical data and economic advice.
Governor of the Bank of Ghana, Dr. Ernest Addison, who is also Chairperson of the Monetary Policy Committee, is expected to make decisions that will influence the cost of credit in the country for the first three months of the year.
Among such decisions will be a review or maintenance of the monetary policy rate which was at the central bank’s 103rd meeting reviewed from 13.5 percent to 14.5 percent, indicating its a measure to help contain significant risks to inflation and dampen emerging pressure on the cedi.
An earlier statement issued by the BoG Governor, Dr. Ernest Addison in November 2021 said: “headline inflation has risen consistently from the low of 7.5 percent in May 2021 to 11 percent in October driven by both food and non-food price increases. In addition, all the bank’s core measures of inflation have increased, indicating broad-based underlying inflation pressures, with the potential of de-anchoring inflation expectations.”
“Currently, headline inflation is above the upper limit of the medium-term target band and the committee noted significant risks to the inflation outlook. These risks include rising global inflation, high energy prices, uncertainties surrounding food prices and investor behaviour,” the statement said.
Meanwhile, a circular issued by the central bank on January 25 2022 said the MPC following its four-day meeting will announce its decision taken on Monday, January 31, 2021, at a press conference.
The monetary policy rate is of keen interest to businesses and the private sector as it influences the interest rate on loans and determines the rate at which the central bank lends to commercial banks.
— Bank of Ghana (@thebankofghana) January 25, 2022