BoG hikes policy rate by 250 basis points, stands at 27%

The Bank of Ghana has hiked the monetary policy rate by 250 basis points from 24.5 percent to 27 percent.

Chairman of the Monetary Policy Committee and BoG Governor, Dr. Ernest Addison said the decision is expected to anchor inflation expectations in the country with the figure standing at 40.4 percent in October 2022.

The move by the central bank is expected to significantly increase the cost of lending and the cost of doing business in the country.

Dr. Ernest Addison speaking at a press conference in Accra said the forecast for inflation is expected to peak until the first quarter of 2023.

Ghana is hoping to secure an IMF-supported programme by the end of this year in order to restore macroeconomic stability, among others.