Ghana central bank notes economic recovery but takes no action at emergency MPC

Ghana’s central bank said on Friday that an emergency meeting of its Monetary Policy Committee had considered whether to take immediate action but held off until a regular meeting later this month. The bank noted in a statement that a broad range of macroeconomic indicators had improved as the West African country emerges from its most severe economic crisis in decades. “Inflation expectations are broadly anchored, external buffers have strengthened, and confidence in the economy is returning,” the bank’s statement said.
“The Committee reaffirmed its commitment to support the recovery process without compromising the gains achieved so far.” The regular MPC meeting will take place from July 28 to 30, with a policy decision announced at its conclusion. Ghana’s economic growth accelerated in the first quarter and inflation to its lowest level since December 2021 in June.
The bank’s statement noted the disinflation, the first-quarter growth rate, a good performance by the external sector, rising international reserves and a stronger local currency. The cedi is up more than 40% against the dollar so far this year. The central bank also said the global economic environment remained uncertain, with weakening global growth momentum and tight financing conditions.