The Monetary Policy Committee of the Bank of Ghana maintained the policy rate at 29% as predicted. Addressing the media after the Committee’s three-day meeting, Governor Dr. Ernest Addision said recent developments in domestic price trends have introduced some uncertainty regarding the inflation trajectory for the year.
He noted that factors such as exchange rate pressures, higher utility tariffs, and increased fuel prices are contributing to an elevated inflation profile.
To address these challenges, the MPC emphasized the need to maintain a strong monetary policy stance. Dr. Addissoni explained that this approach, coupled with robust fiscal consolidation efforts, is essential to achieving the inflation target for the end of the year, which is 15%. He said the Committee will remain vigilant to ensure that these objectives are met and that inflationary pressures are effectively managed.
Meanwhile, the Consumer Index of Economic Activity has improved, though other indicators such as retail sales, domestic VAT collection, cement sales, port activity, and passenger arrivals have shown mixed trends.
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Externally, cocoa prices have seen significant year-to-date growth, while Brent crude oil and gold prices have also increased. The trade balance remains positive, and gross international reserves stand at US$6.87 billion, representing 3.1 months of import cover.
In the banking sector, total assets and deposits have grown annually, though total advances have grown at a slower pace. The capital adequacy ratio is at 14.3%, and the non-performing loan ratio is 24.1%.
