Policy rate kept at 16% by BoG

The policy rate has been kept at 16 percent by the Monetary Policy Committee of the Bank of Ghana (BoG).

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 reviewving the policy rate because they were worried about fiscal situation and its impact revenue.

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This is the fourth time this year that the Bank of Ghana has kept the rate unchanged at 16 per cent since January 2019.

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.

Read full statement below: