BoG flags external-sector pressures ahead of MPC decision

The Bank of Ghana (BoG) has highlighted external-sector pressures as a significant risk for the Monetary Policy Committee (MPC) as it deliberates on its upcoming policy decision. Governor Dr. Johnson Asiama outlined concerns over declining international reserves, a widening current account deficit, and a slowdown in gold shipments, all of which could impact the country's foreign exchange reserves.

These external factors, coupled with rising global risks such as the Middle East conflict driving up energy prices and tightening global financial conditions, have prompted the BoG to closely evaluate the external position before determining the appropriate level of policy space. The MPC, which is set to meet for the first time under Ghana's new 36-month Policy Coordination Instrument with the International Monetary Fund, will need to assess whether the current policy rate remains an appropriate tool for managing inflation expectations amidst these evolving risks.

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