Emmanuel Tsigbey on why Ghana’s MPC kept rates unchanged

Ghana’s Monetary Policy Committee recently announced its decision to maintain the country’s policy rate at 14.5 percent, citing elevated risks to the inflation outlook and a sharp downturn in GDP growth as fallout from the COVID-19 pandemic. Emmanuel Tsigbey, a Chartered Economic Policy Analyst, commended the decision as timely and appropriate given the current global economic climate. Tsigbey highlighted the resilience of Ghana's economy amidst the pandemic, noting that the country has managed to weather the storm better than some other nations. Despite facing challenges, Tsigbey expressed optimism in Ghana's ability to overcome the economic obstacles and maintain stability. The impact of the MPC's decision on Ghana's economy is significant as the country navigates through uncertain times. The risk to inflation remains a key concern, and Tsigbey emphasized the importance of government intervention to address supply chain disruptions and prevent panic-driven price increases. Overall, the decision to keep rates unchanged reflects a cautious approach to ensure economic stability and support growth in the face of ongoing challenges.