Ghana maintains policy rate at 12.5%, three times in a row

The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) today October 19, 2011 maintained the policy rate at 12.5%, same as it announced in July and September this year.

Governor of the BoG and chairman of the MPC, Mr. Kwesi Amissah-Arthur who announced this in a news conference told reporters “consumer confidence improved driven by increase in consumer welfare sentiments and stable inflation expectations” despite decline in business confidence.

Our analysis shows that inflationary pressures will remain stable in the last quarter, in line with established seasonal trends.

According to the BoG, wage pressures, payment arrears and recent depreciation of the exchange rate have increased the upside risks to inflation but sees its inflation target of 9% at the end year achievable.

“Given the assessments and balance of risks to inflation and growth, the MPC has decided to maintain the Monetary Policy Rate at 12.5 per cent,” Mr Amissah-Arthur said.

Ghana’s inflation rate stood at 8.4% in September 2011. The country revised its 2011 second quarter gross domestic product (GDP) growth rate to 16.4% from provisional rate of 33.5% as announced last month by the Ghana Statistical Service (GSS).

By Ekow Quandzie