Calls intensify for a reduction in policy rate

Players in the banking industry say they expect the Bank of Ghana to maintain or reduce its policy rate.

[contextly_sidebar id=”6wCOzEq4Rvz6gPeR6EI3qoseoGBdfWs4″]The Governor of Bank of Ghana, Dr Henry Kofi Wampah will today announce whether or not it will maintain or increase the policy rate.

The Bank of Ghana in its first monetary policy committee meeting for this year maintained the policy rate at 26% citing reduced trends in prices and inflation.

The policy rate is the rate at which the central bank lends to banks and is also used by the banks to calculate their base rates.

MD of Capitl bank FitzGerald Odonkor says he expects that what will be announced will be a reflection of the current state of the market.

“The policy rate will be a reflection of developments in the market and the market is generally stabilizing so we expect that whatever will be decided on will be a reflection of the current state of the market and then the expectation we or the central bank has on the condition of the economy.” He said.

Mr. Odonkor’s comment follows an earlier one made by Economist, Dr. Ebo Turkson who urged the MPC to reduce its policy rate.

According to him, the current inflationary trends and stable currency should be reasons for the MPC to reduce the policy rate.

By: Jessica Ayorkor Aryee/Citibusinessnews.com/Ghana


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