The Bank of Ghana’s Monetary Policy Committee (MPC) voted 4-2 to cut the Monetary Policy Rate by 3.0%, as revealed in the committee’s minutes. Four members cited external pressures like geopolitical tensions and global tariff wars, alongside domestic utility tariff hikes and rising crude oil prices, as risks to inflation, per Graphic Online. They emphasized continued monitoring of disinflation trends for potential further cuts while prioritizing price stability and sustainable growth.
Two dissenting members proposed deeper cuts: one for a 350-basis-point reduction to 24.5%, citing inflation above the medium-term target, and another for a 250-basis-point cut to 25.5%, highlighting similar inflation risks. The MPC, per the Bank of Ghana Act, includes the Governor, two Deputy Governors, the Head of Banking Operations, and two Finance Minister appointees.
The Bank of Ghana rate cut signals cautious optimism. Stay updated on its impact on Ghana’s economy!
source: myjoyonline
