The Bank of Ghana raised its policy rate to 29.5% in an effort to control inflation and stabilize the economy. This move is anticipated to keep borrowing costs high and have an impact on household spending and private sector growth. Even though inflation has slightly decreased recently, it is still high compared to the target range of 82%.

The governor of the bank, Dr. Ernest Addison, emphasized the importance of anchoring inflation expectations towards the medium-term target, which led to the decision to increase the Monetary Policy Rate by 150 basis points. Additionally, the Domestic Debt Exchange Programme (DDEP) has negatively impacted banks, leading to necessary regulatory adjustments to support them.








 The recent budget statement for 2023 has set fiscal policy on a consolidation path, which is consistent with the IMF agreement reached in December 2022. However, the fiscal outlook is dependent on financing of the budget and requires the conclusion of the domestic debt exchange program and securing financing assurances from bilateral donors.


 Parliament needs to pass the relevant revenue bills to advance Ghana's program to the IMF Executive Board, which is crucial for the economy's recovery, disinflation path, and sustained growth.