The Monetary Policy Committee of the Bank of Ghana has maintained the policy rate at 14.5 percent for the second consecutive meeting this year, citing short-term risk emanating from rising crude oil prices and revenues measures in the 2021 budget.
At the release of its decision, the Governor of the Bank of Ghana and Chairman of the Committee, Dr. Ernest Addison said, “Risks to inflation in the near-term are broadly balanced, but there are emerging short-term pressures emanating from the rising crude oil prices and the direct and secondary price effects of the revenue measures announced in the 2021 budget.”
The Governor noted that the committee would remain vigilant to monitor these risks.
After declining in January 2021, inflation rose in February to 10.3 percent, slightly above the upper band of the medium-term target, driven mainly by non-food prices. The Bank’s forecast, however, remains broadly unchanged with headline inflation expected to return to the target band in the second quarter of 2021.
By: Joshua Amlanu
Source: business24.com.gh
