The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has released the minutes of its recent meeting, revealing the arguments behind the decision to hike the policy rate by 100 basis points to 28%. This move aims to curb the rising inflation in the country.

According to the MPC, the decision was made to anchor inflation expectations and prevent any potential escalation of inflationary pressures. The committee believes that this policy stance will help to mitigate the impact of external shocks on the economy.

Governor of the BoG, Dr. Johnson Asiama, stated that “As inflation becomes firmly anchored, the Committee will reassess the scope for a gradual easing in the policy stance.” This indicates that the MPC will continue to monitor the inflation situation and adjust the policy rate accordingly.

The policy rate hike was announced at a press conference in Accra on Friday, March 28. The MPC’s decision is expected to have a significant impact on the economy, particularly on borrowing costs and interest rates.

The publication of the MPC’s arguments provides transparency and insight into the decision-making process, allowing stakeholders to understand the reasoning behind the policy rate hike.