Trends in the Bank of Ghana’s high-frequency real sector indicators point to a sustained pickup in economic activity, Governor Ernest Addison has said.

The updated real Composite Index of Economic Activity (CIEA) recorded an annual growth of 1.6 per cent in July 2024, compared to a contraction of 2.8 per cent for the corresponding period of 2023.

Briefing journalists on Friday, 27 September 2024 after the Monetary Policy Committee’s meeting which culminated in the slashing of the policy rate from 29 to 27 per cent, Dr Addison said: “Construction activities, consumption demand by households and firms, exports, imports, and tourist arrivals contributed to the improvement in economic activity during the period.”

The policy rate is the benchmark at which the central bank lends to commercial banks.

This is the second time in 2024 that it has been cut by the central bank.

In January, the bank reduced it from 30 to 29 per cent.