Home » Ghana Vows to Maintain Firm Monetary Policy
Featured General News Ghana Global News National Security News

Ghana Vows to Maintain Firm Monetary Policy

Ghana’s central bank on Monday pledged to maintain a firm monetary policy stance into the long term despite the decline in inflation over the past three months.

Ernest Addison, the governor of the Bank of Ghana, made this pledge during a press briefing after the latest meeting held by the monetary policy committee of the Ghanaian central bank to assess the economy.

“Even though inflation is decelerating, it remains high relative to the target. Therefore, there is a need to keep the policy rate tighter for longer until inflation is firmly anchored on a downward trajectory towards the medium-term target,” Addison stated.

In line with that stance, the governor announced the decision of the monetary policy committee to maintain the benchmark policy rate at 30 percent.

“All the core measures of inflation and inflation expectations are pointing downwards, and the bank will remain vigilant on risks to the disinflation process,” the governor said.

Ghana has been facing crippling economic difficulties in recent years, with widening budget deficits, ballooning public debt, rapid currency depreciation, and record-high inflation.

In May, the government started a three-year economic restructuring program backed by a 3-billion-U.S. dollar loan from the International Monetary Fund, hoping to resolve the economic challenges and anchor lower inflation.

Source : English News