BoG hikes policy rate to 28%
The Governor of the Bank of Ghana, Dr. Johnson Asiama, explained that this decision aims to re-anchor the inflation-moderating process, ensuring that inflation continues on a downward trajectory.
He noted that the global environment has become more challenging, reflecting trade and economic policy uncertainty.
“The series of tariffs announced by the U.S. administration is evolving and may have negative effects on the global economy. These developments have already triggered downgrades in GDP growth forecasts in the two largest economies-U.S. and China- and in turn, global growth.
“In addition, the disinflation process appears to have stalled in some countries, while financial conditions remain broadly restrictive as central banks slow the pace of monetary policy easing”.
Dr Asiama highlighted the need for policy to remain proactive, stating that external headwinds may spill over to the domestic economy.
“The persistence of these external headwinds may spill over to the domestic economy through the trade and financial channels, highlighting the need for policy to remain proactive,” he stated.
These factors, he warned, could spill over into Ghana’s economy through trade and financial channels, necessitating a proactive policy response.
To strengthen liquidity management and enhance monetary policy transmission, the BoG is implementing:
The BoG assured that once inflation is firmly anchored, the Monetary Policy Committee (MPC) will consider gradual easing of the policy stance.
