The Monetary Policy Committee of the Bank of Ghana after meeting last week and reviewing recent global and domestic developments, including the outlook for the Ghanaian economy has decided to maintain the policy rate for the 6th consecutive time at 14.5 percent.
The maintenance of the policy rate which is of keen interest to businesses, as it ultimately influences average lending rates on loans, is in line with the projection of economists who spoke to Citi Business News ahead of the announcement.
They based their reasons for a stay of the rate among other factors, on the high inflation rate which currently stands at 10.3% for February.
In the statement issued by the Bank of Ghana announcing the stay of the rate at 14.5%, the Monetary Policy Committee attributed the decision to a number of factors including the emerging short-term pressures on inflation emanating from rising crude oil prices and the direct and secondary price effects of the revenue measures announced in the 2021 budget.
The stay of the at 14.5% in March of 2021 comes exactly a year after the Monetary Policy Committee reduced the policy rate by 150 basis points from 16 percent to 14.5 percent for the first time , following the detection of coronavirus cases in March last year. The figure was then maintained in May, July, September and November of 2020 as well in January this year.