BoG Archives - Page 17 of 23

10 May

Inflation Falls To 41.2% In April 2023

wontumionlineBusinessBoG, Food inflation, GSS, Non-food inflation

Year-on-year inflation fell for the 4th month running to 41.2% in April 2023, from 45% in March 2023, extending the disinflation process since January 2023. According to the Ghana Statistical Service, both food inflation and non-food inflation dipped last month. This slump in inflation could compel the Bank of Ghana to keep its policy rate unchanged at 29.5% when the Monetary Policy Committee begins its 112th Meeting on May 17, 2023. However, the cost of credit still remains expensive as average lending rates hover around 35%. According to the figures, food inflation went down to 48.7% in April 2023, from 50.8%…

10 May

BoG To Continue With Policy Rate Hikes To Fast Track Inflation Decline

wontumionlineBusinessBoG, Dr. Ernest Addison

The Bank of Ghana (BoG) has indicated that it may hike again the monetary policy rate to help bring inflation rate down faster. The central bank argued that “the current inflation rate remains significantly above the medium-term target, warranting that tight stance is maintained going forward”. Inflation dropped to 45 percent in March 2023 from 53.6 percent and 52.8 percent in January and February 2023, respectively. The Monetary Policy Committee of the BoG, at its last meeting in March 2023, increased the policy rate by 150 basis points to 29.5 percent. Inflation rate projection The BoG had earlier told Joy…

19 Apr

DDEP: BoG Gives Banks Up To 2025 To Restore Minimum Paid-Up Capital, GH¢10bn Losses Recorded

wontumionlineBusinessBoG, Domestic Debt Exchange Programme (DDEP)

The Bank of Ghana has given banks up to four years, ending in 2025 to ensure that their minimum paid-up capital is restored due to capital shortfall from derecognition losses from the Domestic Debt Exchange Programme. The Central Bank noted that these losses will be spread equally over a period of four years, effective 2022 to enable Capital Adequacy Ratio (CAR). According to the International Financial Reporting Standards (IFRS), derecognition is the removal of all or part of a previously recognized asset or liability from an entity's statement of financial position. The domestic debt exchange programme had some negative impact on banks,…

18 Apr

DDEP: Banks Have Up To 2025 To Restore Minimum Paid-Up Capital; Industry Records Huge Loss In 2023

wontumionlineBusinessBanks, BoG, Capital Adequacy Raio, DDEP

Banks have a maximum of four years, ending 2025, to restore the minimum paid-up capital. This is as a result of capital shortfall arising solely from the derecognition losses. According to the Bank of Ghana, derecognition losses emanating from the Domestic Debt Exchange Programme will be spread equally over a period of four years, effective 2022, for the purposes of Capital Adequacy Ratio (CAR) computation. The International Financial Reporting Standards (IFRS) states that derecognition refers to the removal of an asset or liability (or a portion thereof) from an entity’s balance sheet. Due to the impact of the DDEP on the…

11 Apr

We Saved Economy From Collapsing – BoG

wontumionlineBusinessBoG, Dr. Philip Abradu-Otoo

The Bank of Ghana (BoG) has justified again its financing of the budget post Covid-19, saying, failure to do so will have spelt doom for the economy. Before Covid-19 struck, the Central Bank between 2015 and 2020 had a policy of zero financing of the budget. However, that changed right after Covid-19 when government was struggling to raise enough revenue. Speaking at the University of Ghana 75th Anniversary Public Lecture on “Ghana’s Economic; The need for Paradigm Shift”, Director of Research at the Bank of Ghana, Dr Philip Abradu-Otoo said the Bank of Ghana had no choice but to save…

10 Apr

Inflation To Average 16% In 2024 – Fitch Solutions

wontumionlineBusinessBoG, Fitch solutions, imf, Inflation

Inflation will average 16.0% in 2024, Fitch Solutions has projected. However, it is forecasting inflation to average 37.6% in 2023, higher than the 31.5% recorded in 2022. “As such, we believe that policymakers will remain focused on controlling price growth in the near term as they aim for a more substantial disinflation trajectory before concluding the tightening cycle” it stated in its latest assessment of Ghana. It said under an expected International Monetary Fund (IMF) programme, the Bank of Ghana will likely be encouraged to keep the policy rate elevated to “strengthen its monetary policy framework”. “We forecast inflation will…

06 Apr

Charges Not Disclosed To Borrowers In Loan Agreements Null And Void – BoG

wontumionlineBusinessBoG, Ghana, lenders

The Bank of Ghana (BoG) has announced that charges that are not disclosed to a borrower in a loan agreement should be considered null and void. Describing borrowers who may suffer such ordeal as victims, the BoG also directed commercial banks and lenders to refund such monies to the borrowers. “Borrowers shall be due a refund of all such charges paid”, the BoG stressed in a statement titled Bank of Ghana’s Responsible Borrowing Guidelines. It added that “victims” must report such acts to the regulator if the lenders fail to reverse the payments. According to the BoG, it is embarking…

27 Mar

Average Lending Rates Shoot Up Marginally To 36.64% – BoG

wontumionlineBusinessAverage lending rates, BoG, MPC

Average lending rates shot up marginally to 36.64% in February 2023, from 35.58% recorded in December 2022, data from the Bank of Ghana has revealed. This is equivalent to 3.02% interest rate on loans per month. In January 2023, the average cost of borrowing stood at 35.85%. With the Monetary Policy Committee of the Bank of Ghana expected to announce developments in the Ghanaian economy today March 27, 2023, particularly its key lending rate – Policy rate, it is expected that the policy rate will remain unchanged for the next two and half months. This will keep lending rates still…

27 Mar

Ghana’s Reserves Improve Slightly To $2.62Bn; Balance Of Payment Remains Negative

wontumionlineBusinessbalance of payment, BoG, net reserves

Ghana’s net international reserves improved slightly to $2.62 billion, about 2.8 months of import cover in February 2023, the Bank of Ghana has revealed in its March 2023 Summary of Economic and Financial Data. This is from the $2.24 billion recorded in December 2022, about 2.7 months of import cover. The country’s Balance of Payment at the end of February 2023 also stood at a deficit of $3.63 billion, approximately 5% of Gross Domestic Product. This was as a result of a significant decline in the Capital and Financial Account Balance which stood at a deficit of $2.17 billion in…

14 Mar

GSE, Bog To Establish Formalisation Committee For Foreign Exchange Market

wontumionlineBusinessBoG, GSE

A 5-member delegation, led by the Managing Director of the Ghana Stock Exchange(GSE), Ms. Abena Amoah, paid a courtesy call on Governor Ernest Addison and Management of Bank of Ghana. In her remarks, the Managing Director(MD) of the GSE, Ms. Abena Amoah expressed delight about the warm reception accorded her by the Governor and his team and congratulated the Governor for his leadership, which has positively impacted the financial sector. Ms. Amoah indicated that in equities trading, the Ghana Composite Index recorded a decrease of about 13% as at the end of last year, compared with the previous year. She…