The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has decided to maintain the policy rate at 27%.

In its final meeting for the year, the BoG explained that the timeline for inflation to return to the target range of 6-10% has been pushed forward from the third quarter to the fourth quarter of 2025.

“In the short term, a stronger currency will support improved price stability. Considering these factors, the Monetary Policy Committee chose to keep the policy rate unchanged at 27%,” the statement noted.

The MPC also highlighted that inflation is expected to remain slightly higher than anticipated, driven by volatile food prices, lingering effects of past exchange rate fluctuations, fuel price hikes, and utility tariff increases.

The Committee further explained that rising food prices and a sharp currency depreciation earlier in the year have disrupted the disinflation process and altered the inflation outlook.

“As of the previous MPC meeting, the one-year-ahead average inflation forecast was 19.0%. This has now increased slightly to 20.1% in the current forecast,” the statement concluded.

Source: TheDotNews