No Result
View All Result
Monday, August 8, 2022
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    Yara’s Grow Ghana initiative to help empower farmers and boost yields

    Invest for Jobs and partners of N4G Project graduates 654 girls trained in fashion skills

    S&P downgrade: Gov’t urged to quicken pace of fiscal consolidation

    Ghana EXIM bank CEO hosts national AfCFTA coordinator

    S&P revises Ghana’s rating to ‘CCC+/C’, outlook negative

    LPG Marketers Association promise availability of product after strike

    GIPC and GSE sign MoU to attract more investment into Ghana

    Dr. Ampabeng advocates consolidation of road taxes into fiscal policy

    We’re ready to re-engage gov’t on acquisition of Vodafone shares – Telecel

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    Zenith Bank Ghana wins premium quality West African banking brand of the year 2021

    GIPC and GSE sign MoU to attract more investment into Ghana

    Appolonia City unveils its first commercial building; Adumuah Place

    Dr. Ampabeng advocates consolidation of road taxes into fiscal policy

    WAPCo commits to cleaner and reliable energy

    Government eyeing GH¢750m with new E-VAT policy

    Agribusiness entrepreneurs must take advantage of AfCFTA – ADB MD.

    National AfCFTA Policy Framework and Action Plan launched to boost trade

    We remain committed to getting LPG retailers to resume operations – NPA

  • TECHNOLOGY

    We’re ready to re-engage gov’t on acquisition of Vodafone shares – Telecel

    New deadline for SIM re-registration too short – MoMo agents association

    Extend SIM card re-registration exercise to January 2023 – MoMo agents

    Vodafone agrees sell stake in Ghana’s business to Telecel

    Telecoms Chamber and IIPGH advocate sustained coding education

    IIPGH to enter coding education partnership with Telecoms Chamber

    PayAngel joins Microsoft for Startups Founders Hub

    Node 8, HTU hold first edition of Node X in Ho

    Financial transactions will be allowed even without Ghana card from 1st July – GAB assures

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    Agribusiness entrepreneurs must take advantage of AfCFTA – ADB MD.

    Inflation, debt, and forex crisis is pushing many African economies to the brink – IMF warns

    African countries that could follow Sri Lanka into economic chaos

    Africa’s internet economy to cross $180 billion by 2025: Report

    Regional economic cooperation needed to enhance Africa’s competitiveness – Bawumia

    Ivory Coast is set to receive $26.1 billion worth of development finance from 4 lenders, the EU and France

    Gulf central banks, Bank of England raise policy rates after Fed hike

    US Fed meets inflation surge with 75bp hike

    As Nigeria’s inflation rate accelerates to 17.71%, the World Bank warns millions could face extreme poverty

  • FEATURES
  • Videos
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    Yara’s Grow Ghana initiative to help empower farmers and boost yields

    Invest for Jobs and partners of N4G Project graduates 654 girls trained in fashion skills

    S&P downgrade: Gov’t urged to quicken pace of fiscal consolidation

    Ghana EXIM bank CEO hosts national AfCFTA coordinator

    S&P revises Ghana’s rating to ‘CCC+/C’, outlook negative

    LPG Marketers Association promise availability of product after strike

    GIPC and GSE sign MoU to attract more investment into Ghana

    Dr. Ampabeng advocates consolidation of road taxes into fiscal policy

    We’re ready to re-engage gov’t on acquisition of Vodafone shares – Telecel

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    Zenith Bank Ghana wins premium quality West African banking brand of the year 2021

    GIPC and GSE sign MoU to attract more investment into Ghana

    Appolonia City unveils its first commercial building; Adumuah Place

    Dr. Ampabeng advocates consolidation of road taxes into fiscal policy

    WAPCo commits to cleaner and reliable energy

    Government eyeing GH¢750m with new E-VAT policy

    Agribusiness entrepreneurs must take advantage of AfCFTA – ADB MD.

    National AfCFTA Policy Framework and Action Plan launched to boost trade

    We remain committed to getting LPG retailers to resume operations – NPA

  • TECHNOLOGY

    We’re ready to re-engage gov’t on acquisition of Vodafone shares – Telecel

    New deadline for SIM re-registration too short – MoMo agents association

    Extend SIM card re-registration exercise to January 2023 – MoMo agents

    Vodafone agrees sell stake in Ghana’s business to Telecel

    Telecoms Chamber and IIPGH advocate sustained coding education

    IIPGH to enter coding education partnership with Telecoms Chamber

    PayAngel joins Microsoft for Startups Founders Hub

    Node 8, HTU hold first edition of Node X in Ho

    Financial transactions will be allowed even without Ghana card from 1st July – GAB assures

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    Agribusiness entrepreneurs must take advantage of AfCFTA – ADB MD.

    Inflation, debt, and forex crisis is pushing many African economies to the brink – IMF warns

    African countries that could follow Sri Lanka into economic chaos

    Africa’s internet economy to cross $180 billion by 2025: Report

    Regional economic cooperation needed to enhance Africa’s competitiveness – Bawumia

    Ivory Coast is set to receive $26.1 billion worth of development finance from 4 lenders, the EU and France

    Gulf central banks, Bank of England raise policy rates after Fed hike

    US Fed meets inflation surge with 75bp hike

    As Nigeria’s inflation rate accelerates to 17.71%, the World Bank warns millions could face extreme poverty

  • FEATURES
  • Videos
No Result
View All Result
Citi Business News
No Result
View All Result

Economists & business operators unhappy with policy rate hold

bycitibusinessnews
May 17, 2016
in Banking And Finance, Government, Top Stories
Share on FacebookShare on TwitterShare on Whatsapp

Businesses and economic analysts have responded rather unsatisfactorily at the Monetary Policy Committee of the Bank of Ghana (BoG)’s decision to maintain its policy rate at 26 percent.

According to them, the prevailing economic conditions should have prompted the Monetary Policy Committee (MPC) of the Central Bank to reduce its prime rate rather than maintaining it.

The Governor of the Bank of Ghana, Dr. Abdul Nashir Issahaku on Monday announced that the MPC has maintained its policy rate citing the current inflationary trends and stability in the cedi as the basis for the decision.

ADVERTISEMENT

Prior to the announcement, there were calls on the MPC to reduce the policy rate and cause commercial banks to reduce their lending rates on credit facilities to businesses.

An Economist Dr. Ebo Turkson said, “The cheapest rate you can get for credit in this country now is a minimum of 35%. So that is the point I am making that yes we are targeting inflation but with the inflationary expectation, the proxy members have no option than to either reduce or at least keep the rate where it is,” he said.

Commenting on the decision by the MPC, an economist at the University of Ghana, Dr. Eric Osei Assibey said he was surprised at the move,

“Precisely so, because for some time now the cedi as been stabilizing against the major currencies and if you look at inflation, it has been reducing so I think the Bank of Ghana could have reduced the policy rate,” Dr. Assibey stated.

For his part, the Chief Executive Officer of the Ghana Chamber of Commerce and Industry, Mark Badu Aboagye contends that the move will compound the already difficult situation facing its members in accessing credit.

The chamber contends that banks are not likely to review interest rates on credit which continues to be a major challenge for businesses.

“As a chamber and private organization we were expecting a reduction in policy rate. As it stands now with the 26 percent, it is still among the highest in the world and which means that basically interest rates are going to remain the same. So we were expecting a reduction in the policy rate that will further force interest rates to go down. So we have to borrow at the rate that we are still borrowing at least 35 percent and the private sector is still suffering,” the GCCI CEO explained.

Mr. Aboagye also told Citi Business News the development will stifle the private sector’s contribution to economic growth.

“Infact the private sector is a game changer and that we have to do everything possible to make sure that we give the private sector the necessary support more importantly making funds available to the private sector at a more affordable rate,” he further observed.

Even though the Bank of Ghana has been missing out on its medium term inflation target of 8 percent plus or minus 2, Dr. Issahaku is hopeful the recent decision on the policy rate coupled with other decisions by the bank will enable it achieve its target by the end of 2017.

This he however said will largely be achieved barring any rise in the prices of petroleum products and utility.

–

By: Pius Amihere Eduku/Jessica Ayorkor Aryee/citifmonline.com/Ghana

Related Posts

Top Stories

S&P downgrade: Gov’t urged to quicken pace of fiscal consolidation

byNerteley Nettey

Economist with Databank, Courage Martey has reiterated calls for government to hasten the pace of fiscal consolidation in the short...

Read more

Ghana EXIM bank CEO hosts national AfCFTA coordinator

S&P revises Ghana’s rating to ‘CCC+/C’, outlook negative

Zenith Bank Ghana wins premium quality West African banking brand of the year 2021

LPG Marketers Association promise availability of product after strike

GIPC and GSE sign MoU to attract more investment into Ghana

Dr. Ampabeng advocates consolidation of road taxes into fiscal policy

Next Post

Unilever Ghana records 26 percent growth in 2015 profits

Video on Demand: Business Weekly

ADVERTISEMENT
Citi Business News

© 2019 Citi Business News - CitiBusinessNews.com by CNR Digital.

Navigate Site

  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

Follow Us

No Result
View All Result
  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

© 2019 Citi Business News - CitiBusinessNews.com by CNR Digital.