The Monetary Policy Committee of the Bank of Ghana has reduced the policy rate to 23.5 percent.<\/p>\n
[contextly_sidebar id=”HR8JHuDcs9Lj9Cr2YrevFev0Z5JoDfr6″]This represents a 200 basis point reduction from the previous figure; 25.5 percent.<\/p>\n
Governor of the Central bank, Dr. Abdul Nashiru Issahaku disclosed this at the press briefing to conclude the second MPC meeting for 2017.<\/p>\n
Dr Issahaku cited the declining inflation among others as reasons for the drop in the policy rate.<\/p>\n
\u201cThe Committee noted that underlying inflation pressures have eased considerably and inflation is projected to trend downwards the medium term target of 8 plus or minus 2 percent.\u201d<\/p>\n
He added, \u201cRecent developments in inflation imply money increasing tightening consequently the MPC has decided to reduce the policy rate by 200 basis points to 23.5 percent.\u201d<\/p>\n
The Governor further noted that the confidence of an improved inflation and indication of low growth warranted a reduction of the policy.<\/p>\n
\u201cHowever there are indications that growth is likely to remain significantly below potential which alongside an improved inflation outlook, provides some scope for monetary policy easing.\u201d<\/p>\n
This is the second time that the MPC has reduced the policy rate after keeping it unchanged at 26 percent for a greater part of 2016.<\/p>\n
The policy rate is the rate at which commercial banks borrow from the central bank for onward lending to their customers.<\/p>\n
–<\/p>\n
By: Pius Amihere Eduku\/Lawrence Segbefia\/citibusinessnews.com<\/p>\n","protected":false},"excerpt":{"rendered":"
The Monetary Policy Committee of the Bank of Ghana has reduced the policy rate to 23.5 percent. [contextly_sidebar id=”HR8JHuDcs9Lj9Cr2YrevFev0Z5JoDfr6″]This represents a 200 basis point reduction from the previous figure; 25.5 percent. Governor of the Central bank, Dr. Abdul Nashiru Issahaku disclosed this at the press briefing to conclude the second MPC meeting for 2017. Dr […]<\/p>\n","protected":false},"author":14,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[121,32,171,11],"tags":[],"yoast_head":"\n