Prime News Ghana

BoG maintaining policy rate at 16% is prudent - Consultant

By Justice Kofi Bimpeh
Bank of Ghana, BoG
Bank of Ghana, BoG
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Banking consultant, Nana Acheampong has described the decision of the Bank of Ghana to keep the policy rate unchanged as prudent.

According to Nana Acheampong in an interview with Joy FM, the BoG maintained the policy rate at 16% because they want to be cautious about issues happening in the banking sector.

"I think the decision is on the basis of caution, they are being cautious but above all is the issue with the savings and loans companies, it hasn't been solved and within the banking sector the connect with others and therefore and then the caution is predicated by this decision or the problem with the savings and loans so until they are able to solve that they want to be on the side of caution."

Bank of Ghana’s Monetary Policy Committee has maintained its key lending rate unchanged at 16 percent.

Speaking to the media at a news conference Friday, Governor of the Bank Of Ghana, Dr. Enerst Adisson said this was due to the fact that some marginal threats still remain and the outlook for the economy was quite favourable, hence the decision to hold the rate.

He added that he expects the finance minister to use the Mid-year review to deal with some challenges with revenue.