The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has maintained the policy rate 19 percent.
The committee at its last meeting in July increased the rate from 18 percent to 19 percent.
It attributed the increase, at the time, to domestic fiscal pressures such as exchange rate fluctuations, price volatility and weakening of some global economies resulting in limited capital inflow.
The Policy rate indicates the rate at which commercial banks can borrow from the Central Bank.
Prior to the announcement some economists had predicted that the committee will maintain the rate at 19 percent due to the coming on board of COCOBOD’s 1.7 billion dollars, the 1 billion Eurobond.
Ongoing talks with the International Monetary Fund (IMF) was also expected to have an impact on the rate.
Governor of the Bank of Ghana Dr Henry Kofi Wampah addressing the press today, said the policy rate was maintained on the back of a positive outlook, including positive growth in cocoa production, cash from the Eurobond, the coming on board of gas from the Ghana gas project as well as the provision of support from the IMF.
By: Vivian Kai Mensah/citifmonline.com/Ghana