BOG to announce new policy rate today

The Monetary Policy Committee of the Bank of Ghana, BOG,  is expected to announce a new policy rate today after meeting to assess the economy.

Policy rate which currently stands at 16%  may impact on the cost of borrowing depending on how the rate is reviewed.

The Monetary Policy Committee of the BOG has for the fourth time kept the policy rate at 16 percent since January 2019.

Governor of the Bank of Ghana Dr Ernest Addison speaking at a press briefing on Friday, September 20, 2019, said the decision was as a result of some threats to the country’s economic growth and inflation outlook.

He added that the Monetary Policy Committee had to be careful in reviewing the policy rate because they were worried about fiscal situation and its impact revenue.

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The development is expected to have little impact on the cost of credit reducing significantly.

There were expectations that recent rebased inflation rate of 7.8% and the pickup in GDP estimates should have impacted the policy rate, but Dr Addison noted that it might be too early to respond to these developments, adding that a little bit of time is needed to respond adequately to this development.

He, however, added that there might be the need to review its medium-term outlook for inflation targeting going forward.