Ghana Monetary Policy February 2021


Ghana: Central Bank stands pat for fifth consecutive meeting in January

February 1, 2021

At its 26–29 January meeting, the Monetary Policy Committee of the Bank of Ghana decided to keep the policy rate steady at 14.50%, marking the fifth consecutive hold.

The decision reflected the Bank’s assessment that despite inflation accelerating recently, it expects it to return to target in the second quarter of this year. Inflation jumped to 10.4% in December 2020 (November: 9.8%) as a result of quicker food inflation, thus landing above the Bank’s target range of 6.0%–10.0%. Although short-term risks to inflation are also emerging from fiscal expansion and rising oil prices, they remain broadly contained according to the Bank, enabling it to maintain its accommodative stance.

The Bank struck a relatively neutral tone in the accompanying press release. Nevertheless, it did note that uncertainty has increased amid the second wave of the pandemic, which poses risks to the economic recovery in the near term.

The next meeting is scheduled for 17–19 March, with the decision to be announced on 22 March.

FocusEconomics panelists forecast the policy rate to end 2021 at 13.85% and 2022 at 13.83%.

Author:, Economist

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Ghana Monetary Policy Chart

Ghana Monetary Policy February 2021

Note: Monetary Policy Rate in %.
Source: Bank of Ghana (BoG).

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