Ghana central bank governor urged MPC to consider how to support economic recovery

Ghana's central bank governor urged an emergency meeting of the bank's Monetary Policy Committee to consider how to support the country's economic recovery without taking undue risks, a copy of his remarks sent to journalists on Friday showed.

The West African country has been emerging from its most severe economic crisis in decades, with economic growth accelerating in the first quarter and inflation (GHCPIY=ECI) dropping to its lowest level since December 2021 in June.

The Bank of Ghana convened Thursday's special MPC meeting to review economic data and market developments.

But in the end it did not take any decision on its policy rate (GHCBIR=ECI) ahead of the regular meeting Governor Johnson Asiama later said would take place in about 10 days' time.

"The key question is whether the current macroeconomic configuration permits a recalibration of the policy stance," Asiama said in his opening remarks to MPC members on Thursday.

"With inflation expectations more firmly anchored, external buffers strengthened, and confidence returning, we must assess how to support the recovery without compromising the gains achieved," he added.

Among positive macroeconomic indicators the governor cited Ghana's robust external position, reflected in its $5.6 billion trade surplus in the first half of the year, and its wider current account surplus of $3.4 billion.

He also noted a more than 40% year-to-date appreciation of the cedi against the dollar USDGHS and healthier reserves but said risks remained from last year's fiscal deficit and an uncertain global economic environment.