The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has kept the policy rate at 14.0 percent after the completion of its 130th meeting.

According to the committee, its assessment of domestic and external risks to Ghana's inflation, which is currently at 3.4 percent, revealed a broadly balanced situation.

The committee also pointed out that even though recent increases in prices of fuel at the pumps could cause some challenges, there are enough mitigating measures to cushion the situation from escalating.

“Relative exchange rate stability, increasing reserve buffers, and continued fiscal discipline are expected to help moderate these upside risks”, the committee observed.

Providing more insight at the Bank Square in Accra, Governor of the Bank of Ghana, Dr. Johnson Asiama said the committee also considered recent gains in inflation moderation, exchange rate stability and improving investor confidence before deciding to keep the benchmark rate unchanged.

The decision means the central bank is maintaining its current monetary policy stance to sustain the disinflation process while supporting economic recovery.

The Governor noted that headline inflation has continued its downward trajectory in recent months, supported by tight monetary policy, fiscal consolidation measures and relative stability in the foreign exchange market.

He explained that, while inflationary pressures have eased considerably, risks remain from global commodity price movements, external economic uncertainties and domestic fiscal developments.

Dr. Asiama also highlighted improvements in Ghana’s external sector performance, including stronger reserve accumulation and increased foreign exchange inflows, which have helped stabilise the cedi, as major factors considered in arriving at the decision to keep the policy rate unchanged.

The Monetary Policy Rate serves as the benchmark interest rate that influences borrowing costs for commercial banks, businesses and consumers across the economy