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Ghanaian Times ghanaiantimes.com.gh 23 Nov, 2021 12:00 am

BoG raises policy rate over rising inflation

BoG raises policy rate over rising inflation

On the global economy, Dr Addison said global price pressures on the other hand, had intensified with headline inflation rising above targets in several advanced and emerging market economies.“Inflationary pressures are becoming embedded in most advanced and emerging market economies with potential implications for the current supportive financing conditions driving the recovery, saying the increased concerns about the strength of the recovery and the stronger US dollar has exerted currency pressures in some emerging market and frontier economies, and consequently, policy rates in some emerging market countries had been hiked to counter rising inflation,” the Governor, said.Dr Addison said in the domestic economy, the Committee assessed that the recovery in the real sector was progressing at a steady pace.Dr Addison said the results of the latest confidence surveys signaled continued improvement in both business and consumer sentiments, pointing out that businesses met short-term company targets and were optimistic about company and industry prospects as the yuletide approached, despite concerns about high cost of raw materials and exchange rate depreciation, and, similarly, consumer confidence improved on account of positive economic prospects.

However, Dr Addison said the global economy had continued to recover, but, the intensity of supply constraints, including slack in the labour markets and shortages in intermediate goods had moderated the pace of growth.Dr Addison The Monetary Policy Committee (MPC) of Bank of Ghana (BoG) has increased the policy rate on the back of rising inflation.

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