The Monetary Policy Committee (MPC) will hold the policy rate constant at 30% at its next meeting in November 2023 Monetary Policy Committee (MPC) meeting.

According to GCB Capital Research, a disinflation process is in motion, and the outlook supports a continuous decline in inflation through quarter 4, 2023 despite the emerging upside risks.

“We expect the ongoing macroeconomic and structural reforms, particularly the frontloaded fiscal tightening, the debt reforms, and the memorandum on zero-deficit financing, to anchor the disinflation process”, it stated.

Therefore, the MPC could maintain a rate-neutral decision through January 2024 to anchor the disinflation process, and the monetary policy stance could pivot by March 2024 if the inflation outlook improves sufficiently.

Again, GCB Capital said it expects that nominal interest rates will continue the northward trek through the quarter but at a slower pace as the negative real return gap closes.

The Monetary Policy Committee of the Bank of Ghana (BoG) kept its key lending rate to commercial banks unchanged in September 2023.

It held the rate at 30.0% after the meeting to review developments in the economy.

Addressing the media, Governor of the Bank of Ghana, Dr. Ernest Addison noted that the action was influenced by the fact that all the macroeconomic indicators are responding to past measures to control inflation.

"Given these considerations, the Committee decided to maintain the policy rate at 30.0 percent. The Committee further indicated that while the expectation is for continued disinflation, it stands ready to respond appropriately should inflation deviate from these broad expectations", he said.