BOG maintains policy rate yet again

quist 18:07 - 16 May 2016

Bank of Ghana Governor, Dr. Abdul-Nashiru Issahaku

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.

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.