Dr. Ernest Addison

The Monetary Policy Committee (MPC) of the Bank of Ghana will begin its 107th regular meeting from today July 20, 2022 to Friday, July 22, 2022 to review developments in the economy.

This meeting is coming at a crucial time in which the government is seeking a bailout from the International Monetary Fund to revive the Ghanaian economy.

The economy has been challenged by rising debt and high fiscal deficit, increasing inflation and interest rates as well as exchange rate instability.

This is expected to force the MPC to craft extra monetary measures to support fiscal policy to help stabilise the economy.

Already, a team from the IMF had visited the country to hold meetings with government officials including the Finance Minister, Ken Ofori-Atta, the Governor of the Bank of Ghana, Dr. Ernest Addison and other stakeholders on the way forward in reviving the economy.

Though the rate of inflation reduced in June 2022, the MPC must adopt certain measures besides the Inflation Targeting framework to bring down inflation or stablised the rising prices of goods and services.  

The Central Bank in its last meeting in May 2022 adjusted upward the policy rate by 200 basis points to 19% to help check the rising inflation.

Already, some experts and institutions are projecting a further rise in the policy rate because the real policy rate is still negative.

                                                                                                                                                               

Also, the MPC will review some business risk factors such as consumer and business confidence.

The meeting will conclude with a press conference on Monday, July 25, 2022 to announce the decision of the Committee.