Home / BUSINESS NEWS / Finance / Monetary policy rate reviewed upwards to 17%

Monetary policy rate reviewed upwards to 17%

Central bank reviews its policy rate from 14.5% to 17%

Inflation, among other factors contributed to this new decision

BoG holds 105th MPC meeting

The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has increased the policy rate by 250 basis points from 14.5% to 17%.

This comes after the Committee of the Bank of Ghana, held its 105th meeting from Wednesday, March 16, to Friday, March 18, 2022, to review economic developments of the country.

The policy rate determines the rate at which the central bank lends to commercial banks. It also influences the interest rate on loans.

Bank of Ghana Governor, Dr Ernest Addison, attributed the increasing public debt stock, rise in domestic inflation, straining fiscal policy, among others as some contributing factors to the increase in the monetary policy rate.

Addressing journalists on Monday, March 21, 2022, Dr Ernest Addison said, “Under these circumstances, the committee has decided to increase the policy rate by 250 basis point to 17 percent.”

He stated that the Monetary Policy Committee is however confident that the ongoing discussions will lead to decisive policy reforms that will address underlining fiscal mismatches in the local economy, as well as, restore calm in the market.

Source: www.ghanaweb.com

About admin

Check Also

Akufo-Addo launches $750 million Dev’t Bank Ghana

President Nana Addo Dankwa Akufo-Addo, on Tuesday, 14th June 2022, launched formally the Development Bank …

Here are the 15 items driving inflation in Ghana

  Inflation for May hits 27.6 per cent Grapes the most driver of inflation in …

Transport Ministry contradicts Paul Adom-Otchere on airport Christmas decorations narrative

  The Ministry of Transport has responded to a Right to Information request to provide …

Leave a Reply

Your email address will not be published. Required fields are marked *

WP Twitter Auto Publish Powered By : XYZScripts.com