During its 113^th Monetary policy committee (MPC), the central bank of Ghana raised its MPC rates by 50 basis points to 30%, after about six months of stability at 29.5%. The hike came as no surprise as inflation has been going up since May 2023, although in a subdued manner (42.2% Yoy in May and 42.5% YoY in June).

At the press briefing announcing the rate hike, Dr. Ernest Kwamina Yedu Addison, governor of the central bank indicated decisive action was needed to bring inflation under control to avoid it affecting the economy.

“The effort is to bring inflation down.  The committee is concerned more about inflation than the real sector,” he said.

“Globally, everybody is focused on bringing inflation down. We will continue to see policy tightening until we get inflation to our target…, ” he said, announcing more hikes to come.

M.Mouka