The Monetary Policy Committee of the Bank of Ghana (BoG) has for the fourth time this year kept the policy rate at 16 per cent.
The committee says the decision is as a result of some threats to both inflation outlook and economic growth.
Dr Ernest Addison, the Governor of the Bank of Ghana (BoG) made this known whilst addressing the media, after the 91st Monetary Policy Committee (MPC) meeting in Accra.
Dr Addison said the committee noted the synchronized growth slowdown across advanced economies and its potential spillover effects on emerging markets and developing countries. He further added that the threats to inflation were broadly balanced hence the need to maintain the policy rate at 16 per cent.
Speaking to the media, Dr Addison said, “In addition to subdued inflation, recent assessments indicate that the global economy is in a low growth, low-interest-rate environment. Major central banks have, therefore, shifted towards accommodative monetary policy stance which will likely persist until signs of growth emergence or inflation pick-up become evident.
He concluded by saying, “These developments have triggered favourable global financing conditions as investors search for yield in emerging markets and frontier economies with strong fundamentals, underscoring the need to further consolidate the macroeconomic gains and to position the economy to benefit from the favourable external financing conditions.”
