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Bank of Ghana Keeps Policy Rate Steady at 29%

The Bank of Ghana (BoG) has decided to maintain its Monetary Policy Rate (MPR) at 29% for the second time this year.

This announcement was made by Dr. Ernest Addison, the Governor of the Bank of Ghana, during the 118th monetary policy briefing on Monday, May 27, 2024.

Dr. Addison stated that the decision to keep the rate unchanged is aimed at maintaining a tight monetary policy stance and enhancing liquidity management operations.

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He highlighted several positive economic developments, including a substantial increase in foreign exchange reserves of approximately $2 billion since the inception of the IMF programme

, significant progress in fiscal policy consolidation, and effective restructuring of external debt.

Dr. Addison also mentioned that the latest forecast indicates slightly elevated inflation due to adjustments in transportation services but expressed confidence that inflation will stay within the monetary policy target range.

As a result of this decision, commercial banks will continue to reference the 29% rate for lending, which could affect borrowing costs and economic growth.

“The strong accumulation of about $2 billion in foreign exchange reserves since the start of the IMF programme, the robust fiscal policy consolidation, positive current economic balances, and effective external debt restructuring have all contributed positively to the exchange rate,” Dr. Addison explained.

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