The Bank of Ghana (BoG) has announced a significant reduction of 200 basis points in its Monetary Policy Rate, bringing it down to 27%. This marks the second rate cut since 2021, aimed at providing relief to borrowers and reflecting a decline in inflationary pressures.
Previously maintained at 29% for nine months following a decrease from 30% in January, this latest cut is expected to offer some respite to borrowers for at least the next two months.
During the 120th Monetary Policy Committee press briefing on September 27, Bank of Ghana Governor Dr. Ernest Addison stated that the decision was based on improving economic conditions and easing inflation rates. He noted, “Preliminary data since our last meeting in July indicates that macroeconomic conditions have generally improved. Headline inflation has eased, and economic growth has picked up.”
Addison further explained that robust fiscal policy implementation has supported growth, while tight monetary conditions have aided the disinflation process. “Considering these factors, the Committee has decided to lower the Monetary Policy Rate to 27.0 percent.”
SOURCE: https://dew360.net
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