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The Bank of Ghana led by Dr. Johnson Asiama has taken another major step to enhance its monetary policy formulation process, anchored on the Inflation Targeting (IT) Framework, which started almost two decades ago.
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The enhancement is to shift from consensus-building decision-making on positioning of the monetary policy rate to a majority vote decision process, akin to other major IT central banks.
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Consequently, the Bank will henceforth publish the decision statements which underscore the preferred direction of the policy rate of each Monetary Policy Committee (MPC) member as an additional communication tool to further enhance transparency and accountability in the policymaking process.
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A statement issued by The Bank dated MARCH 2025 said, “this maiden edition provides the public with the deliberations and voting patterns of the MPC members at the 123rd MPC meetings held from 24 – 26 March 2025. At the end of the meetings, the MPC members, by a majority decision, voted to Increase the Monetary Policy Rate (MPR) by 100bps to 28.0 percent”.
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In addition to the increase in the MPR, and to strengthen liquidity management and enhance monetary policy transmission, the Bank will introduce a 273-day instrument to augment the existing sterilization toolkit to intensify the monitoring of banks’ Net Open Positions to ensure compliance: and to also review the current structure of the Cash Reserve Ratio to assess its broader impact on liquidity conditions and financial intermediation in the economy.
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According to the Bank, the next Monetary Policy Decision Statement will be published after the MPC meetings in May 2025
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BELOW IS THE FULL STATEMENT:
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