The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) says it will announce its decision on a possible review of the policy rate on Monday,May 27. This is expected to be after it concludes its review of developments in the economy during its 118th regular meeting from Wednesday May 22 to Friday, May 25.

The MPC in March, following its 117th regular meeting maintained the policy rate at 29% for the second time this year despite signs of disinflation in the first two months of the year.

Governor of the Bank of Ghana and chairman of the MPC, Dr. Ernest Addison, attributed the decision to the slightly elevated profile of inflation forecast suggested from the possible upward revision in transport fares, adjustment in utility tariffs, higher ex-pump prices and some pass through of exchange rate depreciation, adding “risks to inflation are slightly on the upside and will require close monitoring.”

Despite inflation for March 2024 soaring to 25.8%, highest since November 2023 and recent a hike in transport fares in response to higher ex-pump prices mainly fueled by the pass through of exchange rate depreciation, government’s cost of borrowing has slowed significantly, with treasury bill rates declining by about 5% in the first 4 months.

Meanwhile, the Ghana Statistical Service will tomorrow May 8 release inflation figures for April 2024, a key indicator likely to influence the MPC’s decision come May 27.