Accra, January 22, 2018//-The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has maintained its policy rate at 20 percent, citing inflation pressures and fairly robust medium term economic development in the country.
The Chairman of the MPC and Governor of BoG, Dr Ernest Addison made the announcement at a press briefing in Accra today.
He said: “Economic activity has picked up significantly while private sector credit growth is recovering, the non oil sector of the economy is also rebounding after the sluggish performance in the first half of the year, supported by continued improvement in the economic fundamentals.”
“While there was a trend decline in headline and core inflation allowing for some 55o basis points policy rate cut the committee has observed some emerging pressures. Under the circumstances and to ensure that inflation target horizon is maintained and the medium term inflation of eight plus or minus 2 is achieved this year, the committee decided to maintain the policy rate at 20 percent,” Dr Addison added,
In 2017, the MPC reduced the policy rate by 550 basis points. The figure went down from 25.5percent in January to 20 percent as at November 2017.
The policy rate is the rate at which the central bank lends to the commercial banks in the country. With the keeping of the rate, all the commercial banks are expected to maintain their interest rates in the country.
African Eye Report
