Again, fiscal consolidation and debt sustainability concerns continue to haunt the economy, as the public debt has further risen to 76.4 percent of GDP as of July. These and other factors, the MPC noted, makes it necessary for further monitoring, hence, its decision to maintain the policy rate at 13.5 percent. In addition, debt sustainability concerns remain, which warrants additional fiscal consolidation efforts, carefully balanced with sustainable growth strategies and efficient debt management strategies. Although food inflation has pushed overall inflation close to the upper limit of the band, core inflation remains relatively subdued. A close monitoring of the inflation situation is however warranted to respond swiftly to prevent potential second round effects on headline inflation from the rising food inflation.

Source: GhanaWeb September 28, 2021 03:45 UTC