The Bank of Ghana is likely to trigger the Monetary Policy Consultation Clause (MPCC) if the country misses the central target of 18.0%+/-2.
Inflation reached 23% in November 2024 and may go up marginally in December 2024.
According to the Monetary Policy Consultation Clause (MPCC) for Ghana’s ongoing International Monetary Fund programme, if actual inflation falls outside the lower or upper outer bands for the test dates, the MPCC will be triggered.
This will involve discussions with the IMF Board with proposed remedial actions to be implemented by the Ghanaian authorities.
“Given the revised central target of 18.0%, we estimate the upper outer band at 22.0%, above which the authorities would have to trigger the MPCC”, IC Research said in its macroeconomic update.
“With the risk of overshooting the upper outer band, which would trigger the MPCC, we believe the Bank of Ghana opted for the aggressive FX [foreign exchange] sales to ensure a favourable pass-through of FX appreciation and contain inflation below 22.0% by end-2024”, it stated.
Ghana’s Consumer Price Inflation sustained its upsurge in November 2024 as the relentless climb in food inflation outweighed the modest decline in non-food inflation, fanning the price pressure.
Headline inflation quickened by 90 basis points to 23.0% year-on-year, against analysts expectation for a modest decline in November 2024.
Latest Stories
-
24-Hour Economy must focus on value addition – Ghana Exporters Federation President
3 minutes -
Dundee United sign Ghana midfielder Pappoe on loan from Hungarian champions
6 minutes -
New framework offers hope for sustainable management of West Africa’s climate-stressed lagoons
24 minutes -
FirstBank Ghana MD urges students to join Junior Internship Programme
29 minutes -
Chief of Staff urges NACAP II team to tighten the fight against corruption
31 minutes -
National Adaptation Plan is Ghana’s blueprint for climate resilience – Climate Activist
39 minutes -
MIT Africa Business Challenge: A triumphant start and a bold vision for 2026
46 minutes -
ADB celebrates 60 years with health walk, eyes top 3 spot in Ghana’s banking sector
1 hour -
The holiday that refused to die: Republic Day’s strategic resurrection
2 hours -
My galamsey ventures
2 hours -
Kumasi to get machinery park – 24H Economy Secretariat
2 hours -
NSMQ2025: St. James Seminary flexes national pedigree with big zonal win and riddle bonanza sweep
2 hours -
ECG assures stable power supply at KATH to improve healthcare delivery
2 hours -
NPP desperate to avoid defeat in Ablekuma North re-run – Omane Boamah
2 hours -
FirstBank Ghana launches 2025 internship to develop the next generation of leaders
2 hours