Four out of six members of the Monetary Policy Committee of the Bank of Ghana have voted for a 3.0% rate cut.

This was contained in the minutes of the votes of the members released by the Bank of Ghana.

A scan of the document by the Bank of Ghana showed that majority of these members where worried about the potential threat to inflation rate going up due to what they describe as “external pressures from geopolitical tensions, global tariffs wars, alongside domestic pressures from pending quarterly adjustments in utility tariffs, energy sector levy on ex-pump prices and emerging pressures on crude oil prices present upside risks to inflation”.

However, four out of the six members of the Monetary Policy Committee were quick to add that “they will continue to asses incoming data and likely reduce the policy rate further, should the disinflation trend continue".

They also added that the Committee remains committed to the price stability mandate, while creating conditions for inclusive and sustainable growth.

Dissenting views

However, there were two members of the Committee that did not go with the majority decision.

One of them for instance voted for the Monetary Policy Rate (MPR) to be cut by 350 basis points to 24.5%.

This member for instance was worried that inflation remains higher than the Medium-Term Target aimed at global economic uncertainty.

Another member who voted for a 250 basis points cut to 25.5% also highlighted risk to inflation as a major concern.

Composition of the MPC

According to the Bank of Ghana Act, the MPC is made up of the Bank of Ghana Governor, the First and Second Deputy Governors of the Bank of Ghana and the Head of Banking Operations at the Bank of Ghana

Two other members of the Committee are appointed by the Minister of Finance. They are persons with knowledge or experience in relevant to the functions of the Monetary Policy Committee.