Monetary Policy Committee Of BoG Begins Meeting Today
The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) will begin its 124th meeting today to review macroeconomic developments in the country. The policy rate is currently at 28.0%.
The meeting comes at a time when the cedi has witnessed one of its best performances in recent years, appreciating by 17.17% since January 1, 2025, against the US dollar.
As of Monday, May 19, 2025, the cedi was trading at GH¢12.23 to the dollar on the interbank market — the official rate quoted by the Bank of Ghana.
The committee is expected to deliberate on measures to sustain these gains while working to reduce inflation, which slowed marginally to 21.2% in April 2025 from 22.4% in March.
According to the Ghana Statistical Service, the marginal reduction in April inflation was influenced by a decline in both food and non-food inflation compared to the same period last year.
Some economists have raised concerns about the aggressive rally of the cedi over such a short period, cautioning that it could hurt the economy in the long run.
To some observers, a gradual appreciation is more beneficial to the economy, as it avoids disruptions that could affect revenue inflows.
Among other issues, the committee is expected to assess the potential shocks the sudden appreciation of the cedi may have on the economy, particularly in relation to export receipts.
The Bank of Ghana has already stated that it has enough reserves and will not deplete them to support the currency.
Source: Myjoyonline
