Bank of Ghana keeps policy rate unchanged at 25.5 percent

The Monetary Policy Committee of the Bank of Ghana (BoG) has kept its policy rate unchanged.

The bank left its key lending rate to commercial banks at 25.5 percent because of what it sees as threats to economic growth and inflation.

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Governor of the Central Bank, Dr Abdul Nashiru Issahaku on Monday, January 23, 2017 said "the Committee viewed the risks to inflation and growth as balanced and decided to maintain the Monetary Policy Rate at 25.5 percent."

He indicated that "the latest consumer sentiments survey conducted after the December 2016 polls reflected optimism about economic prospects. In addition, the expected increase in oil production from Tweneboa-Enyenra-Ntomme (TEN) and coming on stream of the Sankofa-Gye Nyame oil fields are expected to boost growth in 2017."

Against the backdrop of the modest outlook of the fiscal environment, the Committee viewed the declining trends observed in headline inflation, core inflation and inflation expectations as positive, hence its decision on the monetary policy rate.

"There is therefore the need to return to the path of fiscal consolidation to complement the tight monetary policy stance to deliver on the medium term inflation target," he said.