The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, will today, March 24, 2025, chair his first Monetary Policy Committee (MPC) meeting to review economic developments.
The meeting, which begins today, is expected to conclude on Wednesday, March 26, 2025. The committee will engage the media on Friday, March 28, to announce its decision on the policy rate.
Key Issues on the Agenda
The main focus of the meeting is to assess economic developments and implement measures to control inflation, which currently stands at 23.1 percent. The government is targeting an end-of-year inflation rate of 11.9 percent.
Some analysts speculate that the committee may increase the policy rate to curb inflation. Another consideration is whether to adjust the rate to compensate investors following a decline in Treasury Bill rates over the past two months.
Sources familiar with the committee’s deliberations suggest there is a strong possibility of a policy rate hike.
Proposed Reforms
Ahead of the meeting, Dr. Asiama proposed several reforms to improve transparency in the committee’s work. These include modifications to the Monetary Policy Framework, publishing meeting minutes, and disclosing the voting patterns of members.
He also pledged to engage the private sector and the Ghana Union of Traders Association (GUTA) after the meeting. However, it remains unclear whether these reforms will take effect during this session.
The policy rate plays a critical role in influencing the cost of credit in the country and shaping interest rate trends in the coming months.