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.