The Bank of Ghana policy rate has been further reduced by 20%. This was disclosed by the central bank to the media on the sidelines of the meeting of the Bank of Ghana Monetary Policy (MPC) on Monday November 27, 2017.
According to the BoG, the MPC cut its key lending rate by some 100 bases points which brings it down to 20.5% from the previous 21%.
In his statement - Governor of the Bank of Ghana, Dr. Ernest Addison indicated that the decision of the MPC to cut the policy rate was based on favorable economic outlook for the rest of the year.
Dr. Addison sated that, the BoG as a last lending resort for the banks is in committed to providing commercial banks in the country, “that liquidity support†they may require as long as such banks have the assets to back that liquidity from the BoG.
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The BoG boss noted that there have been a higher level of confidence in the banks and the economy in general following the fiscal consolidation and monetary stability measures of the government and the central bank.
Earlier this year, the bank of Ghana had issue a directive which gives all commercial banking institution in the country until ending of 2018 to recapitalize or present itself for merger or acquisitions by bigger competitors.
On another development, latest BoG data reveal that the country’s debt stock has hit Ghc138. 9billion as of ending of September 2017 – representing its slowest increase in recent times with just a growth of Ghc3 million earlier in June this year.
Some market analyst attribute the slow debt stock increases to the government’s debt profiling and a relative stability of the Ghana cedi earlier this year.
If the debt stock is distributed among the country’s estimated 28 million people, each Ghanaian will be owing about Ghc5, 000 each.
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