By Anthony Sedzro
The Bank of Ghana (BoG) has decided to maintain the Monetary Policy Rate (MPR) unchanged at 21 percent.
At a press meeting this morning, Dr Ernest Addison, the Governor of the BoG said despite improvements in consumer confidence, an increase in inflation and petroleum price increases informed the MPC to keep the rate unchanged.
“There was however, a blip in the three consecutive months of declining inflation as consumer price inflation rose from 11.9 percent in July to 12.3 percent in August driven by food and non-food prices,” the governor explained.
Dr Addison went on: “Since August 2017, there have been upward adjustments in ex-pump petroleum prices which are likely to transmit through prices in the coming months and pose some risks to the inflation outlook.”
The governor said the Central Bank decided to pause the easing cycle in view of emerging risks to tge inflation outlook and take the necessary policy actions if the underlying pressures persist.
The MPR rate is the rate at which the Central Bank lends to the commercial banks.
In July, the BoG reduced the policy rate from 22.5 percent to 21 percent, citing a continuous decline in headline inflation as th3 main reason.