BoG holds 124th policy meeting with cedi gains, inflation in focus
By: Solomon Nartey Tetteh
The Monetary Policy Committee (MPC) of the Bank of Ghana has begun its 124th meeting today, focusing on recent macroeconomic trends and the outlook for the Ghanaian economy.
The meeting comes at a time when the local currency, the cedi, has recorded notable gains against the US dollar, offering a measure of stability. However, inflation remains a concern, maintaining pressure on policymakers.
At its last meeting, the MPC raised the monetary policy rate by 100 basis points to 28 percent—a move aimed at reinforcing efforts to moderate inflation.
Analysts predict that the Central Bank is likely to hold the rate steady, adopting a wait-and-see approach. Research from Databank suggests inflation may ease further, potentially settling between 17 and 19 percent by mid-year, provided there are no unexpected economic shocks.
With relatively stable prices and a strengthening cedi, the market is watching closely for any shifts in the Bank’s policy direction. The outcome of this meeting could influence interest rates, investor sentiment, and the overall pace of economic activity. The MPC’s decision will be announced at a press briefing scheduled for Monday, May 26.
