- The Bank of Ghana has maintained the Monetary Policy Rate at 14.5% after an earlier reduction from 16.5%
- It explained that it reached that decision because of the balance of risks to inflation and a downturn in GDP growth
- The Central Bank added that relief measures on water and electricity tariffs as well as declining crude oil prices could possibly ease price pressures in the outlook
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The Bank of Ghana (BoG) has maintained the Monetary Police Rate at 14.5%, YEN.com.gh has learned.
The decision follows a March 2020 meeting where the rate was reduced from 16% to 14.5%
Information available shows that some commercial banks, impressed with the decision, called for a further reduction in order to ease access to credit.
According to the Governor of the Bank of Ghana, Dr Ernest Addison, "on the growth outlook, baseline projections show a sharp downturn in GDP growth with the economy operating below capacity in the medium-term. Under the circumstances and given the balance of risks to inflation and growth, the Committee decided to keep the policy rate unchanged at 14.5 percent."
READ ALSO: EIU predicts a possible fall in Monetary Policy Rate in Ghana
Per a report by Ghana Web, he added that the bank’s latest forecast points to elevated risks to the inflation outlook in the forecast horizon, underscored by the recent jump in headline inflation.
Dr. Addison went on to say that relief measures on water and electricity tariffs as well as declining crude oil prices are likely to ease price pressures in the outlook.
YEN.com.gh earlier reported that Ghana’s annual Consumer Price Inflation (CPI) increased to 10.6% in April from 7.8% in March 2020.
The increase, per information available, was as a result of higher food prices in areas affected by the partial lockdown imposed by the government.
This was contained in a report released by the Ghana Statistical Service (GSS) on Wednesday, May 13, 2020.
READ ALSO: Ghana's growth rate could fall from 6% to 1.5% - Minister
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