The latest forecast by Fitch indicates that inflation, on the other hand, will witness a sharp increase of 16.0% in 2024.
In a myjoyonline report sighted by GhanaWeb Business, Fitch Solutions said the hike in the policy rate will strengthen the monetary policy framework of the Bank of Ghana.
“Turning to 2024, we believe that the BoG will keep the policy rate on hold at 30.50%. While inflation will moderate further – we forecast inflation will average 16.0% in 2024 – we believe that it is unlikely that the BoG will start easing monetary policy,” the rating firm said.
"Indeed, under an expected International Monetary Fund programme, the Central Bank will likely be encouraged to keep the policy rate elevated to “strengthen its monetary policy framework”, it added.
The projection comes after the Monetary Policy Committee of the Bank of Ghana announced a hike in the policy rate by 150 basis points.
The new policy rate stands at 29.5 percent from an earlier 28 percent announced in January this year.
The decision comes after the Bank of Ghana held its second meeting for 2023 to review economic developments in the country.
Governor of the Bank, Dr. Ernest Addison explained that the hike in the policy rate was due to rising inflationary shocks which are expected to persist as Ghana awaits an IMF-supported programme.
Watch the latest edition of BizTech and Biz Headlines below:
Bank of Ghana Governor, Dr Ernest Addison