Monetary Policy
Press Releases
MPC Press Release - December 2003
Wednesday, 31 December 2003 00:00

Since the last Monetary Policy Committee meeting, information and data that have become available point to improving economic fundamentals and an outlook for inflation and growth for the near term that is much better than forecast earlier in the year, with strong signals that the disinflation process is firmly taking hold.

MPC Press Release - October 2003
Friday, 31 October 2003 00:00

Available information and data indicate considerable improvement in the key macroeconomic indicators during the third quarter, and that the process of disinflation is taking hold. Headline inflation has continued its downward trend. Twelve-month consumer price inflation eased from some 29.6 per cent in June to 27.7 per cent in August. The average monthly increases in the index have diminished steadily since the spike in February 2003 and have been the lowest since 1999.

MPC Press Release - May 2003
Friday, 30 May 2003 00:00

The fiscal outturn shows increased domestic revenue mobilization and lower than programmed expenditure.

  • Total revenue for the first quarter amounted to ¢2,698 billion, exceeding the budget target by some ¢90.0 billion.
  • Total expenditure on the other hand was contained below the budget target with the result that there was a domestic primary balance surplus of ¢190.8 billion compared to a budgeted deficit target of ¢421.0 billion for the quarter. Consequently, net domestic financing of the budget amounted to ¢369.0 billion, which was significantly less than the budget target of ¢823.0 billion. The government’s borrowing requirements were met fully by the non-bank private sector on the domestic money market.
  • Government improved its financial position with the banking system to the tune of some ¢551 billion by the first half of May 2003. However the domestic public debt stock rose by 3.9 percent in the first quarter of 2003 compared to an increase of 8.5 percent in the same period last year.
  • Holdings of government securities continued to be dominated by short term instruments, with the 91-day and 182-day Treasury bills accounting for some 80.0 percent of the total. The Banking system holdings of Government securities declined from 55.0 per cent in March 2002 to some 51.5 percent by March 2003.
MPC Press Release - March 2003
Monday, 31 March 2003 00:00

Since the last MPC meeting was held in January, developments in the economy show clear signs of continued build-up of inflationary pressures. Annual consumer price inflation as measured by the consumer price index, turned in at 16.3 percent in January, edging up from 15.2 percent recorded in December 2002.

The impulses underlying the upturn in the inflation rate since the beginning of the fourth quarter of 2002, were the feed through of the public sector borrowing of the 2002 budget, the liquidity injection of currency for purchases of the unexpectedly large 2002/2003 cocoa crop, and downward pressures on the exchange rate stemming from the above trend growth in domestic liquidity as well as the effect of the sharp depreciation of the US dollar viz-a-viz the Euro (and the pound sterling).

MPC Press Release - January 2003
Thursday, 30 January 2003 00:00

The Monetary Policy Committee of the Bank of Ghana has undertaken a review of macroeconomic performance in 2002 and the outlook for inflation in 2003.

  • The year 2002 ended with inflation at 15.2 percent, down from 21.3 per cent in December 2001, and up from 12.9 per cent in September 2002. The yearly average inflation has fallen from about 33.0 percent in December 2001 to 14.8 per cent by December 2002. The latest numbers show that after reaching a low of 12.9 per cent in September, inflation has gone up for the third consecutive month notwithstanding the bumper harvest reported in 2002. The cedi depreciated by 15.4 per cent in dollar terms during the year, against an annual inflation of some 15.2 per cent.

Page 28 of 28

Press Releases