BOG maintains policy rate yet again

quist

May 16, 2016 6:07 PM

According to him, this was due to the stability in the forex exchange performance of the Ghana Cedi as well as stability in inflation rates.

Bank of Ghana Governor, Dr. Abdul-Nashiru Issahaku

Newly- appointed governor of the Bank of Ghana, Dr. Abdul Issahaku has maintained the monetary policy rate for the third consecutive month at 26%.

“Our committee has decided to maintain the policy rate at 26 percent…whatever decision we take is to steer inflation towards our medium term target of 8 percent plus or minus 2.”

The Central bank has been missing its inflation target for some time now.

The inflation rate has been maintained at 26% since January 2016, which signals stabilisation of the local currency according to some financial experts.

The Governor was also confident that the inflation target of 8% will be achieved, despite the current rate of April being 19.7%.

“Recent developments in prices remain in line with our own earlier forecast that inflation will peak the first quarter of 2016 and decline thereafter. It is supported by a continuous policy tightness and stability in the local currency,” he stated.

quist