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BoG set to review policy rate

Sept. 12, 2015, 9:29 a.m.

The Monetary Policy Committee of the Bank of Ghana is expected to wind up its meetings on the health of the economy for a likely upward review of the policy rate next week.

The committee held its first meeting on Monday to assess figures from certain sectors of the economy.

The central bank’s move is influenced by recommendations from the IMF for some detailed scrutiny of economic data and some transparency in the workings of the monetary policy committee.

Already there are predictions that the policy rate, which currently stands at 24 percent, could notch up significantly after the Bank of Ghana review.

The IMF is also pushing for further increases in the policy rate to check inflation.

However, should the central bow to pressure and increase the rate again, it could worsen current credit squeeze on the market.

Economist Dr. Joe Abbey for instance says it will not be in the interest of the economy for the policy rate to be increased from the current 24 percent.

Analysts would also be anticipating new figures for Ghana’s public debt, which stood at 90 billion Ghana cedis as at June this year.


Disclaimer: The views expressed in the news report do not necessarily reflect the views of the National Development Planning Commission (NDPC)