Ghana’s Monetary Policy Committee made no changes to it’s benchmark interest rate. Policy rate remains high at about 14.5 per cent.
At a press briefing, Governor of the Bank of Ghana, Ernest Addison said data available to the bank shows some rebound in economic activity as consumers seem to be responding to the gradual lifting of restrictions.
Minutes of the monetary policy committee released on Monday further stated that the headline inflation, after edging up sharply to 11.4% in July 2020, has started going down, now at 10.5% in August, on the back of declining food prices.
Food inflation has steadily declined from 15.1% in May to 11.4% in August, partly reflecting seasonal effects. Non-food inflation has however, increased from 8.4% to 9.9% over the review period.
Under the circumstances, the committee’s view is that risks to the immediate outlook for inflation and growth are broadly balanced and decided to keep the policy rate unchanged at 14.5%
The next Monetary Policy Committee (MPC) meeting is scheduled for November 18-20, 2020.