FULL TEXT: BoG Monetary Policy Committee hikes benchmark rate to 22%

The Bank of Ghana has increased the monetary policy rate by 300 basis points to hit 22% from an earlier 19% rate.

This comes after an emergency meeting was held on August 17, 2022, to address the hike in inflation rates which currently stands at an all-time high of 31.7%.

The Central Bank in an August 17 statement said, “Under the circumstances, and considering the risks to the inflation outlook, the Committee decided on a 300 basis points increase in the Monetary Policy Rate to 22 per cent.”

It also said “The latest consumer price index release showed that the headline inflation accelerated further for the eleventh consecutive month to 31.7 per cent in July 2022, from 29.8 per cent in June 2022. This was driven by both food and nonfood price pressures.

“Food inflation rose to 32.3 per cent in July 2022 from 30.7 per cent in June 2022. Similarly, non-food inflation increased to 31.3 per cent from 29.1 per cent in June 2022, contributing 55 per cent to the rise in headline inflation in July 2022.”

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Find below the full statement.