We are concerned about inflation outlook when it comes to MPC decisions – BoG Governor

Bank of Ghana Governor Dr Johnson Asiama highlighted that the Monetary Policy Committee (MPC) closely monitors the inflation outlook before determining the policy rate. He emphasized that the committee's decisions are influenced by their predictions about where inflation is headed and the potential risks that could impact this outlook.

Speaking at the MPC's inaugural Educational Observership Programme, which introduced Economics and Business students to the central bank's monetary policy operations, Dr Asiama explained that several factors, such as developments in the Middle East, can influence the committee's decision to keep the policy rate unchanged. He mentioned that the MPC has shifted from relying on consensus to adopting a majority decision-making approach, as the latter allows members to express their individual perspectives more freely.

Dr Asiama stressed the importance of maintaining the independence of MPC members, who are required to argue their positions without succumbing to external influences. The Governor also highlighted the role of inflation expectations as a crucial factor in determining the appropriate policy rate, underscoring that a dedicated research team supports the central bank's monetary policy decisions.