The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has kept the policy rate at 29.5 percent.
It is said that this is the first time in 2023 that the Central Bank is maintaining the key rate.
The policy rate in which businesses have much interest in indicates the rate at which the Central Bank will lend to commercial banks.
It also then influences average lending rates on loans to individuals and businesses.
Speaking at a press briefing on Monday, 22nd May 2023, the Governor of the Bank of Ghana who is also the Chairperson of the MPC, Dr. Ernest Addison mentioned a slowdown in inflation as the major reason for the unaffected rate.
He said “The Committee noted the significant decline in headline inflation from the beginning of the year of more than 12.0%. The percentage of items in the Consumer Price Index (CPI) basket with inflation of more than 50% and above is receding”
To him, this is an indication of a strong return to the disinflation path.
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Source: Rosemond Asmah/ATLFMNEWS
