The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has maintained the policy rate at 20% after meeting last week to review the health of the economy.
At a press briefing Monday, the Governor of the Central Bank, Dr Ernest Addison said the move was influenced by fears that inflation could be going up due to current developments on the global market.
“The fiscal consolidation process is on track and it is expected to deliver better than the programmed budget deficit in 2017,” he disclosed.
He explained that this was because “expenditures were properly aligned to address shortfalls in revenues.”
According to Dr Addison, economic activities have also picked up significantly while private sector credit growth is recovering.
He said the non-oil sector of the economy is also rebounding after a sluggish performance at the beginning of the year.
“This is supported by continued improvement in the economic fundamentals and improved investor confidence.