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.
“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 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.