Business News of Friday, 18 May 2018
The Monetary Policy Committee (MPC) of the Bank of Ghana will Friday, May 18, 2018, conclude its meetings on assessing the economy.
The committee is expected to provide its verdict on the economy and announce a new policy rate on Monday, May 21st, 2018.
At the last MPC meeting in March, the policy rate was reduced by 200 basis points.
The figure dropped from 20 to 18 percent.
The decision came after maintaining the rate at 20 percent between November 2017 and January 2018.
The policy rate is also expected to influence the lending rates of commercial banks in Ghana, subsequently.
The Governor of the Bank of Ghana, Dr. Ernest Addison, at the recent MPC meeting with the media, attributed the decision to reduce the rate to the central bank’s moves to achieve the annual inflation target.
According to him, the Monetary Policy Committee (MPC) decided to reduce the policy rate to also help ease the burden of interest payments on the budget.
“The Committee noted that the current inflation forecast provides scope for monetary policy to realign interest rates, translate the disinflation gains achieved so far to the market, and reinforce the fiscal consolidation process by easing the burden of interest payments on the budget. Under these circumstances, the Committee decided to reduce the monetary policy rate by 200 basis points to 18.0 percent”.