policy rate Archives - Wontumi Online

26 Mar

BoG Stays Policy Rate At 29%

Wontumi1BusinessBoG, policy rate

The Bank of Ghana has maintained its monetary policy rate at twenty-nine per cent. This comes amid calls from the International Monetary Fund to Central Banks to be careful when cutting interest rates as looser monetary policy could push inflation up further. This is the first time the BOG is maintaining the rate this year. Dr. Ernest Addison, Governor of the central bank, speaking during the 117th MPC meeting’s press briefing highlighted the reason behind the decision. “Despite a sharp deceleration in 2023, the pace of disinflation has moderated in the first two months of the year. While inflation experienced…

11 Mar

MPC Begins Meetings Next Week: Will Policy Rate Stay Or Increase?

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The Monetary Policy Committee (MPC) of the Bank of Ghana will hold its 117th Regular Meeting from Wednesday, March 20, 2024, to Friday, March 22, 2024, to review developments in the economy. According to a notice posted on the bank’s website, the meetings will conclude with a press conference on Monday, March 25, 2024, to announce the decision of the committee. A key consideration will be the monetary policy rate which is currently pegged at 29 per cent having been reduced by 100 basis points from 30 per cent. The bank, in explaining its decision for reducing the policy rate,…

29 Jan

Pressure Mounts On BoG To Reduce Policy Rate — Chamber Of Commerce Latest To Push

Wontumi1BusinessBoG, policy rate

Pressure is mounting on the Monetary Policy Committee of the Bank of Ghana (BoG) to reduce the policy rate to enable a positive effect on the cost of borrowing in the country. As part of its mandate, the committee, otherwise known as MPC, has been using the policy rate as a key tool for checking inflation. The rate currently stands at 30 per cent with a corresponding impact on interest rates which hovers at an average of 32 per cent, a development which is stifling businesses because of their inability to borrow at such an exorbitant rate. Many experts have…

20 Sep

Policy Rate To Be Maintained At 30% – GCB Capital

Wontumi1BusinessGCB Capital, inflation, policy rate

Ahead of the announcement of a policy rate on Monday September 25, 2023, GCB Capital expects the Monetary Policy Committee [MPC] of the Bank of Ghana to maintain the policy rate at 30% for the rest 2023. It however believes the policy stance will subside in first quarter of 2024 once inflation eases sufficiently. In its weekly report, it said inflation will decline in quarter 2023. “Separately, the CPI [Consumer Price Index] data published last week shows headline inflation eased by 3% in August 2023 ahead of the MPC meeting starting at midweek. Despite the simmering upside risks from petroleum…

27 Jul

Policy Rate Hike Will Not Tame Inflation; Industry Will Rather Suffer – GNCCI

Wontumi1BusinessGNCCI, Mark Badu-Aboadgye, policy rate

The Ghana National Chamber of Commerce and Industry is challenging claims by the Bank of Ghana that the hike in the policy rate is to control inflation and liquidity in the system. According to the Chamber, the method adopted by the regulator to tame down inflation is not effective as inflation rather keeps increasing. It contend the 30% policy rate will complicate the current challenges facing the industry and result in further shut down of businesses. Speaking to Joy Business, Chief Executive Officer of the GNCCI, Mark Badu-Aboadgye, maintained, if the government continues to impose taxes, controlling inflation will be…

27 Jul

Policy Rate To Be Kept At 30% At Next MPC Meeting – Fitch Solutions Predicts

Wontumi1BusinessBoG, Fitch Solutions, policy rate

Fitch Solutions is forecasting a steady policy rate of 30.0% by the Bank of Ghana at its next meeting in September 2023. It however believes that the Central Bank will commence a monetary easing cycle in the fourth quarter of 2023, as inflation will moderate rapidly towards the end of 2023. In its latest report on Ghana, the UK-based firm said the regulator of the banking industry will cut the benchmark policy rate by 200 basis points to 28.00 percent by the end of the year. Fitch Solutions furthered that inflation will moderate rapidly in the 4th quarter of 2023…