The Governor of the Bank of Ghana, Dr Nashiru Issahaku, has allayed fears the 2016 elections scheduled for December will have a major impact on inflation.
Election seasons have often been associated with increased campaign expenditure, which pushes inflation beyond the target set by the central bank. Meanwhile, the bank is aiming to reduce inflation to a single digit by close of the year.
Dr Issahaku said the decision to maintain the policy rate at 26 per cent took into account the risk to growth and inflation.
Speaking at a press conference in Accra, Dr Issahaku noted that changing the policy rate from the current level would affect growth. He expressed the conviction that there would be growth once macroeconomic stability was achieved in the medium term.
The inflation rate recently jumped from 16.7% to 16.9% for August.