Ahead of the announcement of a new policy rate on Monday, financial actors are anticipating a stay in the figure.
This they believe will further bolster the disinflation trajectory of the economy.
It comes as the Monetary Policy Committee (MPC) of the Central Bank has initiated its routine meetings to assess the state of the economy.
The Committee at its last meeting in July 2023, increased the policy rate by 50 basis points to 30 per cent.
GCB Capital suggested that given the easing of inflation to 40.1 percent, it is expected that the policy rate will be maintained till end of year.
The marginal decline in the inflation rate is the first time in three months after it started rising in May.
“Separately, the CPI data published last week shows headline inflation eased by 3% in Aug-23 ahead of the MPC meeting starting at midweek. Despite the simmering upside risks from petroleum prices, we expect inflation to decline through Q4 2023, thanks to the anticipated favourable base drift effects. Thus, we expect the Monetary Policy Committee to maintain a rate-neutral stance through 2023, with the policy stance likely to pivot in Q1 2024 once inflation eases sufficiently.”
The 114th meeting of the MPC of the Bank of Ghana is expected to decide on steps to ensure financial and economic stability.
Dominating the MPC meeting will be the policy rate decision aimed at taming inflation and ensuring price stability.
