The Bank of Ghana (BoG) has merged the Monetary Policy Rate and the Reverse Repo Rate which is the effective rate at which Bank of Ghana lends to commercial banks.
[contextly_sidebar id=”JyeIehnsIAN9dTaY315y3A7Ib1Hm1Pf5″]The merger takes effect from tomorrow August 13, 2015.
According to the Bank of Ghana, the merged rate shall continue to be referred to as the Monetary Policy Rate and will be positioned at 24 per cent.
This merger is to ensure transparency in the monetary policy stance of the central bank.
According to the BOG the changes in effect; do not reflect a change in monetary policy stance, since the maximum lending rate of the Bank of Ghana remains unchanged at 25 per cent.
Meanwhile the BoG has also introduced a 7-day Reverse Repo (lending) facility, available to all banks to help them manage liquidity more effectively.
The Reverse Repo facility is the principal instrument through which Bank of Ghana will inject liquidity into the banking system during periods of general liquidity shortage.
Citi Business News understands the detailed modalities and procedures for accessing the facility have already been communicated to the banks.
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By: Lorrencia Nkrumah/citifmonline.com/Ghana