The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) today July 13, 2015 commenced its meetings to review developments in the economy.
[contextly_sidebar id=”oxgIk8tQsRFIf0cbDx8lVJbU96MlSAP0″]The meetings will end this Wednesday July 15, 2015 with a press conference which will be addressed by the Governor of the Bank Of Ghana Dr Henry Kofi Wampah to announce the decision of the MPC on the appropriate positioning of the Bank’s policy rate.
At the last meeting in May,2015 the Monetary Policy Committee increased the policy rate by 100 basis point to 22 percent.
It was increased at a time when the central bank had come under severe pressure to reduce its lending rate following the country’s high interest rates.
The increment shocked many including some economists and industry players.
The policy rate is used by commercial banks to calculate their base rates and industry players feared May’s hike will lead to an increase in interest rates which hover around 35 percent on the average.
May’s hike is the highest rate since December, 2003 when the rate was at 21.50 percent.
This week’s meeting is also expected to focus on the economy proper and the cedi which for close to two weeks has seen some significant improvement following the pumping of 20 million dollars into the economy daily as well as the activities of speculators.
By: Vivian Kai Lokko/citifmonline.com/Ghana