Ghana’s central bank keeps policy rate at 16% to end 2013

The Bank of Ghana (BoG) has maintained its policy rate at 16%, the third consecutive time this year, it announced today November 27, 2013 in Accra.

This is the last meeting of the Bank’s Monetary Policy Committee (MPC) in 2013 meaning the rate will hold throughout the end of the year until the next meeting in 2014.

Addressing the press, Chairman of the MPC and BoG Governor Dr Kofi Wampah said the Committee was of the view that upside risks to inflation, though elevated, are mainly structural and therefore may not need to be addressed by a policy rate adjustment at this time.

The Committee concluded that headline inflation will breach the 2013 target of 9%. Headline inflation rose from 11.5% in August to 13.1% in October 2013.

Dr Wampah stated that there are no significant risks to growth hence the Committee’s decision to maintain the policy rate at 16%.

He noted the MPC will continue to monitor developments and take appropriate action if required.

The 58th MPC meeting began November 25 to 27, 2013 to review the latest economic developments and the monetary policy stance.

By Ekow Quandzie