The Monetary Policy Committee of the Bank of Ghana (BoG) is set to announce its decision on the policy rate which will influence the cost of lending for the next two months of the year.

At the last MPC meeting of 2023, the Bank of Ghana kept the policy rate unchanged at 30 percent for the second consecutive period.

The decision by the Central Bank was based on core inflation measures trending downwards with the disinflation path expected to ease further.

Bank of Ghana Governor, Dr Ernest Addison speaking at an earlier press conference on November 27 said the implementation of the 2024 budget has been strong in reflecting the attainment of fiscal targets under the IMF programme for the first review.

Dr Addison also noted that the 2024 budget statement has been designed to reinforce the ongoing fiscal consolidation.

The policy rate determines the benchmark at which the central bank lends to commercial banks and influence the interest rate on loans.

At the 116th meeting, the MPC deliberated on the initiation of proposals for the formulation of the central banks’ policies, provision of statistical data, and economic advice.

Meanwhile, some economists and market watchers expect the Central Bank to begin cutting the policy rate to align with the downward trend in inflation which is projected to drop to 22.4% for January 2024.

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