The Ghanaian central bank observes economic recovery but does little in response to the MPC emergency

The central bank of Ghana announced on Friday that its Monetary Policy Committee had discussed taking urgent action during an emergency meeting on Thursday, but decided to postpone it until a regular meeting later this month.

As the West African nation emerges from its worst economic crisis in decades, the bank said in a statement that a wide variety of macroeconomic indicators have improved.

“Inflation expectations are broadly anchored, external buffers have strengthened, and confidence in the economy is returning,” the statement read.

“The Committee reaffirmed its commitment to support the recovery process without compromising the gains achieved so far.”

A policy decision will be made following the normal MPC meeting, which is scheduled for July 28–30.

In the first quarter, Ghana’s economy grew more quickly, and in June, the country’s inflation rate (GHCPIY=ECI) fell to its lowest level since December 2021.

Disinflation, the first-quarter growth rate, a robust external sector, increasing international reserves, and a stronger local currency were all mentioned in the bank’s statement.

This year, the cedi has increased by over 40% compared to the dollar.

The central bank added that tight financing conditions and waning global growth momentum made the global economic climate still unpredictable.