The Governor of the Bank of Ghana, Dr Johnson Asiama has played-down concerns that the central bank’s recent decision to reduce its policy rate by 150 basis points to 14 percent could undermine the country’s economic stability even as geopolitical tensions in the Middle East continue to reverberate through global markets.
Addressing the media, following the Monetary Policy Committee (MPC) meeting on Wednesday, Dr. Asiama said the cut which brought the Monetary Policy Rate to 14% was well‑anchored in the country’s improving macroeconomic fundamentals and does not jeopardise Ghana’s growth prospects.
“The adjustment of 150 basis points in our policy rate does not pose a risk to the economy,” Dr. Asiama said. “Our inflation trajectory remains sound, and our policy stance continues to support both price stability and sustainable growth regardless of disruptions originating from the Middle East.”
His comments come amid mounting global concerns that the ongoing conflict in the Middle East has pushed up crude oil prices and introduced fresh uncertainty into the global inflation outlook developments that have complicated central bank deliberations worldwide.
Dr. Asiama acknowledged that external geopolitical shocks could influence trade and financial conditions, but he stressed Ghana’s economic resilience.
“While we remain mindful of external risks, including those from distant conflict zones, the recent policy decision reflects a careful balance one that safeguards domestic stability while supporting economic activity.”
Dr. Asiama also reiterated that the bank will continue to monitor global developments closely and adjust its policy stance as necessary to sustain economic stability.
“Our focus is on ensuring that the economy continues on a stable path. That requires both vigilance in the face of global uncertainties and confidence in the progress we have achieved,” the Governor added.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.
Source: www.myjoyonline.com