The Monetary Policy Committee (MPC) of the Bank of Ghana has announced its 113th Regular Meetings from Wednesday, July 19, 2023, to Friday, July 21, 2023.
During the meeting, the Bank of Ghana will thoroughly assess the current economic situation and review developments in the economy. The MPC will analyze various economic indicators, including inflation rates, GDP growth, exchange rates, and other relevant factors that influence monetary policy decisions.
The committee will also take into consideration global economic trends and their potential impact on the Ghanaian economy.
Following the conclusion of the meetings, the MPC will hold a press conference on Monday, July 24, 2023, to announce the outcome of their deliberations and communicate the decisions made regarding monetary policy.
This press conference serves as an opportunity for the public, media, and stakeholders to gain insights into the committee’s assessments and understand the policy measures implemented to ensure economic stability and growth.
The decisions made by the MPC can have significant implications for the economy, as they can influence interest rates, lending practices, and overall monetary conditions. The committee’s decisions aim to achieve the Bank of Ghana’s objectives of maintaining price stability, supporting economic growth, and ensuring financial stability within the country.
The 113th Regular Meetings of the MPC also demonstrate the commitment of the Bank of Ghana to carefully analyze economic developments and make informed decisions to steer the economy in the right direction. The press conference following the meetings will provide transparency and clarity regarding the monetary policy actions taken by the committee.
The Meeting will be chaired by the Governor of the bank, Dr. Ernest Addison and is expected to review recent developments in the Ghanaian economy in the last six months.
The Committeee’s Decision Yet to Be Known
However, it is yet to be known whether the committee will maintain the policy rate at the prevailing rate, increase, or even decrease it following the recent happenings in the economy.
Despite the uncertainty about the outcomes on the policy rate from the yet to commence meeting, it is highly probable government may decide to increase the rate on the market in order to raise more funds to address its prevalent challenges amongst which are its high accumulated debt, weakening of the local currency and price instability.
From an economical perspective, increased monetary policy rate results in an appreciation of currency, as foreign investors seek higher returns and increase their demand for the currency.
With a key challenge for the government now being how to deal with the poor performance of the cedi and the rising inflation, it is possible the monetary policy rate will be hiked.
This being a dire need of government therefore, the committee from the yet to commence meeting may decide on contractionary monetary policy to draw more funds to deal with the incumbent issues on Ghana’s financial desk.
Consumers Are Likely To Be Disadvantaged By MPR Hikes
The central bank is likely to benefit from increase in the policy rate as it may have a good outlook on the Ghanaian cedi as explained earlier with more to keep in its reserves, however, may turn out disadvantageous to the consumer, that is individuals and commercial banks, who will have to suffer hikes in prices of commodities and lending rate hikes.
Looking at the current situation of the economy and troubled state of the citizenry as a result of being taxed more, having to spend more to buy just few items on the market and enjoying some services from their service providers, spending more to buy fuel, just to mention but a few; it will be of great imbalance and unfairness to further increase prices associated with their consumption as well as the lending rate.
Increasing the lending rate will mean favoring the rich and doing a great injustice to the poor and financially handicapped in the country.
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