Ghana maintains policy rate for the for-6th time by BoG in short-term inflationary pressures

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By: Norvisi Eyiram Mawunyegah

 March 26, 2021

Bank of GhanaMonetary Policy Committee in a meeting last week,revising recent global and domestic developmentsalso the outlook for the Ghanaian economy has decided to maintain the policy rate for the 6th time at 14.5 percent.

Maintaining the policy rate is the main target to businesses, as it purposes influences average rates on loans.Still taking a stand on the same rate among other factors includes high inflation rate which currently stands at 10.3% for February.

 Bank of Ghana announcing the stay of the rate 14.5% in a press release, the Monetary Policy Committee accredited the conclusion to some factors including pressures on inflation coming from high crude oil prices and the direct and secondary price effects of the revenue measures announced in the 2021 budget.

The rate 14.5%, in March of 2021 comes exactly a year after the Monetary Policy Committee compact the policy rate by 150 basis points from 16 percent to 14.5 percent for the first time. The figure was repeated in May, July, September and November of 2020 as well in January this year