The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has begun its quarterly meeting to evaluate the economy for the last three months and make projections for the next quarter. Coming on the back of relative stability in the economy, the committee would consider a monetary policy that would promote the creation of jobs, reduction of poverty and the lowering of the budget deficit. Some economic think-tanks including the Center for Policy Analysis (CEPA) and the Institute of Statistical Social and Economic Research (ISSER) have raised questions about the economic outlook; with CEPA predicting an inflation rate of 20.9 percent by the end of the year. The MPC would have to adopt the right policies to keep inflation low in order not to push interest rates high and to ensure that the country’s Gross Domestic Product (GDP) does not fall far below the annual target of 5.9 percent. In Ghana, the difference between deposit interest rate and lending rate are so wide that anytime interest rates raises, the banks tend to benefit. The BoG has been able to keep the Ghanaian Cedi relative stable against the major foreign currencies for the last two months. The MPC is expected to adopt a new foreign exchange policy to support a steady depreciation of the country’s currency in the medium to long-term. Presently, the country’s inflation rate, which is currently at 19.65 percent, appears to have stabilized, indicating that the BoG’s inflation target policy of mopping up excess liquidity has helped checked excessive spending in the economy. However, the MPC might not alter the current Prime Rate; the rate at which the BoG lends to banks. Some economic indicators such as fiscal and trade deficits, foreign reserves and other important indicators would also be reviewed by the MPC. It would also assess the business risk factors and announce the evaluation of the economy and other new developments in a press conference next week. Additionally, the committee is expected to evaluate the Central Bank’s assessment of the economy and suggest appropriate policies. By Charles Nixon Yeboah