The Bank of Ghana Monetary Policy Committee (MPC) on Monday voted to maintain its policy rate at 26 percent, notwithstanding the concerns over the recent hike in petroleum utility prices leading to an increase in inflation.

Dr. Kofi Wampah, Central Bank of Ghana Governor and Chairman of the MPC said the risks posed by petroleum prices are mitigated by the lower crude oil prices on the world market, and an improvement in the country’s energy supply situation.

He also stated that, in assessing the economic conditions, the Committee noted that policy-tightening in the past meetings took into account the expected increases in utility prices; as well as the raise in monetary policy in the US, further stating that the transmission of these impulses are still working through the system.

The increase in last month’s inflation “indicates some moderation in price movements over the previous month. The slower pace of inflation reflects the tight monetary policy stance and ongoing fiscal consolidation…our latest survey shows that inflation expectations have broadly moderated” added the Bank of Ghana Governor.

The MPC’s decision was further supported by the relative stability in exchange rates, with the cedi depreciating about 0.5 percent year-to-date against the dollar compared to a 0.8 percent decline over the same period last year.

“Maintaining the tight policy stance, smoothening the supply of foreign exchange and enforcing the repatriation of export proceeds into the banking system — in line with the Foreign Exchange Act — are expected to moderate the seasonal volatilities usually experienced in the first-half of the year” said Dr Wampah.