The chairman of the Monetary Policy Committee of the Bank of Ghana (BoG), Dr. Abdul-Nashiru Issahaku, has expressed worry over the current level of inflation, warning that it is still high compared to the medium term target.
Speaking Monday after concluding the Central Bank’s 72nd regular MPC meetings, he said per the assessment of the current economic conditions, the Committee observed some moderations in headline inflation since its July meeting on the back of continued Cedi stability, easing inflation pressures and tight credit conditions.
These, according to him, implicitly reflect continued monetary policy tightness and that together with projections of tighter fiscal consolidation and lower growth, contributed to inward shift in the forecast horizon from the third quarter to the second of 2017.
Notwithstanding these gains, Dr. Issahaku said, current levels of inflation are still not the best and that in the light of the assessment, the committee decided to retain the monetary policy rate at 26percent.
The Committee, he assured, will continue to monitor developments in the economy and take appropriate actions, if necessary, towards attaining the medium-term inflation target over the forecast horizon.
The next Monetary Policy Committee (MPC) meeting is scheduled for Friday, November 18, 2016.
