Bank of Ghana Raises Policy Rate to 19%

The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) on Monday (23 May 2022) raised the policy rate by 200 basis points to 19% amid increases in oil and food prices.

Speaking at the 106th MPC press briefing in Accra, the Governor of the Bank of Ghana, Dr Ernest Addison, said the move is expected to control rising inflation and check the rapid depreciation of the cedi as well as rising food prices.

He said, “The committee took the view that it needed to decisively address the current inflationary pressures to re-anchor expectations and help foster macroeconomic stability.”

Dr Addison said, “… the heightened uncertainties surrounding the inflation dynamics has weighed heavily on the domestic environment and significantly depressed business and consumer sentiments.”

In March, the BoG raised the policy rate by 250 basis points to 17% amid increases in oil and food prices.