Ghana’s central bank will evaluate whether its current monetary policy is effective enough to continue reducing consumer inflation, Governor Johnson Asiama said on Wednesday.
The Bank of Ghana raised its interest rate in March after a slight drop in inflation in February. However, the bank indicated it would reassess the possibility of easing monetary policy in the future.
Speaking at the bank’s monetary policy committee meeting ahead of a rate decision expected on Friday, Asiama noted that factors like the foreign exchange rate and market confidence would be taken into account.
“As we approach our deliberations, we must carefully assess whether the current monetary policy stance remains adequate to drive disinflation without undermining fragile growth momentum,” Asiama stated.
While consumer inflation has slowed for the fourth consecutive month to 21.2% in April, down from 22.4% in March, it remains far above the Bank of Ghana’s target of 8%, with a 2% margin of error.
Asiama highlighted that inflation continues to be influenced by food supply constraints in northern Ghana and the Sahel region, along with volatile global commodity prices.
