MPC to begin quarterly meeting Nov. 11

Monetary policy is likely to remain tight when the Monetary Policy Committee of the Bank of Ghana begins its 58th review of the Ghanaian economy from November 11.

The committee is expected to find a solution to the persistent pressures on the economy coming on the back of increment in utility tariffs and fuel prices.

The challenges have impacted negatively on inflation, the exchange rate as well as the balance of payment situation of the country.

Ahead of the meeting, senior analyst at Databank Research, Sampson Akligoh tells XYZ BUSINESS it is unlikely the policy rate will come down.

“We should see a Monetary Policy Committee that will be reluctant to reduce interest rates so that the outlook really looks like interest rates are likely to remain the same with more possibility for tightening. I do not see that the recent hikes in utility prices and petroleum prices affect core inflation.”

The MPC kept its policy rate-the rate at which it lends to banks unchanged at 16 percent the last time it met in August to control some excess money in circulation.