Bank of Ghana (BoG) to announce Monetary Policy Rate today

By InstinctBusiness Sep 27, 2021 0

The Monetary Policy Committee (MPC) of the Bank of Ghana, is set to announce the policy rate later on Monday, September 27, 2021.

The rate is of keen interest to businesses, as it determines the rate at which the BoG lends to commercial banks, and subsequently influences interest rates on loans.

The Committee began its 102nd regular meetings from Wednesday 22nd September 2021 through to Friday, September 24, 2021, to review developments in the economy and make certain critical decisions.

In its quest to foster economic growth and ensure financial stability in response to developments on the local and external front, the Monetary Policy Committee, MPC, of the Bank of Ghana, BoG, at the 100th Meeting, for the first time since March 2020 reduced the policy rate to 13.5 percent.

That was a 100 basis points reduction in the rate, which had been kept unchanged at 14.5% percent for at least six consecutive times.

The Central Bank also, at its 101st MPC meeting in July this year, maintained the rate at 13.5 percent.

According to the Governor of the Bank of Ghana, Dr. Ernest Addison, headline inflation has eased sharply and reverted within the medium-term target band, driven mainly by the tight monetary policy stance and some base drift effects.

Ahead of the announcement by the BoG, Economist with Databank, Courage Martey said the successive increases in the inflation rate from 7.5% in May to 9.7% in August amongst others, is likely to lead to a stay of the rate.