The Bank of Ghana’s Monetary Policy Committee (MPC) has started its first meeting of 2025 on January 22, as it seeks to evaluate the country’s economic situation and implement measures to ensure stability. The three-day meeting, which will conclude on January 27, is expected to provide new policy insights to tackle the country’s ongoing economic pressures.

The current policy rate stands at 27%, following a reduction in November 2024. Many in the business community are hopeful for another rate cut, citing concerns that high borrowing costs continue to hinder investment and economic growth.

Inflation has also become a key issue, with the rate reaching 23.8% in December 2024, driven by rising food prices and the depreciation of the cedi. The government’s inflation target for the end of 2024, set at 15%, was not met, prompting calls for further action from the central bank.

In a statement at the previous MPC meeting in November 2024, Bank of Ghana Governor Dr. Ernest Addison acknowledged the challenges, particularly the impact of high food prices and the pass-through effects of a weaker currency.

As the MPC convenes, businesses and analysts are closely watching for signals that could help curb inflation and support a more stable economic environment, with hopes that new policy measures will stimulate investment and recovery.

Source:TheDotNews