BoG hikes policy rate by 100 basis points from 27% to 28%

The Monetary Policy Committee (MPC) of the Bank of Ghana has hiked the monetary policy rate by 100 basis points from 27 percent to 28 percent.

The move according to the Central Bank Governor, Dr. Ernest Addison is based on macroeconomic adjustments aimed at driving down inflationary pressures.

He explained that Staff Level Agreement reached with the International Monetary Fund is also contingent on the Domestic Debt Exchange Programme and external debt restructuring, which when concluded and the necessary financial commitment obtained, will allow the presentation of the SLA to the IMF Board.

"The MPC believes that these measures will help restore fiscal and debt sustainability and bring down inflation as well as help stabilise the currency.

In the interim, the MPC sees the need to remain vigilant and moderate liquidity in the system to underpin macroeconomic adjustments taking place to drive inflation on a downward path. Under the circumstances, the Committee decided to increase the policy rate by 100 basis points to 28 percent," the Governor explained.

Dr. Ernest Addison made this known speaking at the 110th MPC press briefing in Accra on Monday, January 30, 2023.