Ghana’s central bank has kept its indicative policy rate at 16 percent for the fourth consecutive time, after reducing it to this level in January.
Addressing the media after the 90th regular meeting of the monetary policy committee, the governor of the Bank of Ghana Ernest Addison attributed the decision to the increasing inflationary pressures and the weak domestic revenue mobilization.
“On inflation, the committee observed that the pace of disinflation had slowed somewhat. The recent underlying inflation trends gauged by the core inflation and weighted inflation expectations all showed some uptick in August 2019,” Addison indicated.
Ghana’s medium-term inflation target was set at 8.2 percent, meaning that the drop to 7.8 percent in August was a better performance.
However, Addison said the recent dip in the inflation rate could be temporary.
Ghana’s central bank runs an inflation targeting model of monetary policy and has price stability and exchange rate stability as some of its core mandates. Enditem