Bank of Ghana expects 9.5% inflation to end 2010

The Bank of Ghana is optimistic that the year 2010 could end with inflation at 9.5%.

According to the central bank governor, Kwesi Amissah Arthur, the macroeconomic policy mix over the past year has provided an anchor for such inflation despite the slow down of disinflation.

Mr Amissah Arthur made this observation at the 42nd press conference of the Monetary Policy Committee (MPC). The press conference was after the MPC had met to review developments in the economy and to announce the Bank’s policy rate.

“Despite the slowdown, the Committee expects that 2010 will end with an inflation rate close to the central target of 9.5%,” he said.

Looking ahead into 2011, the committee anticipates that inflation would be below 9%.

The policy rate was maintained at 13.5%. This is the third time in the year that the policy rate has remained unchanged at 13.5%.

The policy rate is the rate at which the central bank lends to commercial banks. It was first cut to 13.5% from 15% in July 2010.

By Ekow Quandzie
ghanabusinessnews.com