The Monetary Policy Committee of the Bank of Ghana says its observation in the first seven month of the year indicates that revenue exceeded targets, while expenditures remained within target.
These developments resulted in a fiscal deficit of 3 percent of GDP, within the program target of 4 percent.
According to the MPC “maintaining the pace of fiscal consolidation over the medium term is necessary to complement the tight monetary policy stance for the attainment of the medium term inflation target.
External sector developments continued to pose significant risks to the domestic economy.
The committee was concerned about adverse effects of elevated volatility in financial markets, uncertainty as to the timing and impact of tightening in the Fed’s monetary policy and declining commodity prices on the balance of payments and in turn the inflation outlook.
