The Bank of Ghana’s Monetary Policy Committee (MPC) raised the monetary policy rate by 150 basis points, to 29.5 percent.
The prime rate indicates the rate at which the Central Bank will lend to commercial banks and is of great relevance to businesses.
As a result, it affects the typical lending rates for loans to people and enterprises.
Read Also: china pledges support for ghanas debt treatment
In his address to the media, Governor of the Central Bank, Dr. Ernest Addison, cited likely risks to the inflation outlook despite the recent moderation and deceleration of inflationary pressures, the marginal stabilisation of the local currency, and near-term forecasts.
“This will be critical in resetting the economy on the path of recovery and sustaining growth. Headline inflation has declined marginally for two consecutive times but continues to remain relatively high compared to the medium-term target of 8+ or -2%.”
“To place the economy firmly on the part of stability, it is important that the Bank of Ghana increases the Monetary Policy rate.”
SOURCE: CITINEWS
