Dr. Ernest Addison
Governor of the Bank of Ghana, Dr. Ernest Addison, has announced that the Monetary Policy Committee has decided to maintain the policy rate at 29.5 percent.
This is good news for businesses and individuals who were expecting an increase in the rate, which would have made borrowing more expensive.
The Monetary Policy Rate is a key indicator of the Central Bank’s stance on monetary policy and its outlook on the economy. It is also closely watched by investors and analysts as a signal of the direction of interest rates.
Speaking at a press conference on Monday May 22, 2023, the Chairman of the Committee and Governor of the central bank stated that the decision to maintain the policy rate was based on the assessment of the current economic environment and the outlook for inflation.
The committee noted that inflation had been on a downward trend, with the latest figure standing at 8.5 percent in April, within the Bank’s target range of 8. 2 percent.
The committee also noted that the recent stability in the exchange rate and the improvement in the external sector had contributed to the favorable inflation outlook. However, it cautioned that risks to the inflation outlook still remained, particularly from the uncertainty in the global economy and the potential impact of the COVID-19 pandemic.
Dr. Addison emphasized that the Bank of Ghana would continue to monitor developments in the economy and take appropriate measures to ensure price stability and support economic growth.
Overall, the decision to maintain the policy rate is expected to have a positive impact on the economy, as it signals the Central Bank’s commitment to supporting borrowing and investment. This is good news for businesses and individuals looking to access credit, as the cost of borrowing may marginally go down in the coming months.
By Vincent Kubi