No Result
View All Result
Monday, October 2, 2023
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    AGI Advocates for Innovative Policies to Support SMEs

    Prices of Domestic Petroleum Products Set to Rise in October – IES

    BOST clarifies amount paid for iPhones bought for company executives

    IMF hopeful Ghana will soon reach agreement with Official Credit Committee

    Fuel prices to remain fairly stable at the pumps – COPEC

    Restructuring NIB’s balance sheet won’t fix solvency challenges – Banking consultant cautions

    2023 #CitiBusinessOlympics: Defending champions GCB retains title

    Check out some lively photos from 2023 #CitiBusinessOlympics

    #CitiBusinessOlympics: Citi TV/Citi FM applauded for well-organized event

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

    AGI Advocates for Innovative Policies to Support SMEs

    Prices of Domestic Petroleum Products Set to Rise in October – IES

    FBNBank Ghana launches Akye promotion

    Transport owners and the missing NPA: who assured Sentuo to import BRVs?

    BOST clarifies amount paid for iPhones bought for company executives

    Fuel prices to remain fairly stable at the pumps – COPEC

    Restructuring NIB’s balance sheet won’t fix solvency challenges – Banking consultant cautions

    Thousands to participate in 2023 #CitiBusinessOlympics today

    Vodafone Ghana’s commitment to SMEs shines at Business Runway 2023

  • TECHNOLOGY

    Genius IT Foundation achieves STEM.org accreditation

    Pharmaceutical Society charged to utilize AI to transform industry

    Apple says iPhone and iPad apps will show up on the vision OS App Store from the get-go

    China launches $41 billion fund to accelerate semiconductor industry

    Digital marketing: Event managers urged to explore growth opportunities

    Govt. urged to commit more investments to enhance AI competencies

    Stakeholders in digital ecosystem charged to do more to protect child privacy

    Cyber hygiene key for public safety – Dr. Albert Antwi Boasiako

    Ban on cryptocurrency still in force – Finance Ministry warns

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

    South Africa adds Ghana to E Visa list

    Ofori-Atta commends G20 for AU’s inclusion, urges common voice

    Nine ventures announced for Africa Money and DeFi Summit investment showcase

    African Union to launch regional credit rating agency in 2024

    New study reveals alarming food access disparity affecting 650 million Africans

    Global food price index declines in August

    ECO currency challenges: Technical committee attributes delays to external shocks, others

    African leaders emphasize in-continent processing of mineral wealth at climate summit

    Indian investors commit $14 billion to Nigeria, to strengthen several Nigerian sectors

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

    AGI Advocates for Innovative Policies to Support SMEs

    Prices of Domestic Petroleum Products Set to Rise in October – IES

    BOST clarifies amount paid for iPhones bought for company executives

    IMF hopeful Ghana will soon reach agreement with Official Credit Committee

    Fuel prices to remain fairly stable at the pumps – COPEC

    Restructuring NIB’s balance sheet won’t fix solvency challenges – Banking consultant cautions

    2023 #CitiBusinessOlympics: Defending champions GCB retains title

    Check out some lively photos from 2023 #CitiBusinessOlympics

    #CitiBusinessOlympics: Citi TV/Citi FM applauded for well-organized event

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

    AGI Advocates for Innovative Policies to Support SMEs

    Prices of Domestic Petroleum Products Set to Rise in October – IES

    FBNBank Ghana launches Akye promotion

    Transport owners and the missing NPA: who assured Sentuo to import BRVs?

    BOST clarifies amount paid for iPhones bought for company executives

    Fuel prices to remain fairly stable at the pumps – COPEC

    Restructuring NIB’s balance sheet won’t fix solvency challenges – Banking consultant cautions

    Thousands to participate in 2023 #CitiBusinessOlympics today

    Vodafone Ghana’s commitment to SMEs shines at Business Runway 2023

  • TECHNOLOGY

    Genius IT Foundation achieves STEM.org accreditation

    Pharmaceutical Society charged to utilize AI to transform industry

    Apple says iPhone and iPad apps will show up on the vision OS App Store from the get-go

    China launches $41 billion fund to accelerate semiconductor industry

    Digital marketing: Event managers urged to explore growth opportunities

    Govt. urged to commit more investments to enhance AI competencies

    Stakeholders in digital ecosystem charged to do more to protect child privacy

    Cyber hygiene key for public safety – Dr. Albert Antwi Boasiako

    Ban on cryptocurrency still in force – Finance Ministry warns

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

    South Africa adds Ghana to E Visa list

    Ofori-Atta commends G20 for AU’s inclusion, urges common voice

    Nine ventures announced for Africa Money and DeFi Summit investment showcase

    African Union to launch regional credit rating agency in 2024

    New study reveals alarming food access disparity affecting 650 million Africans

    Global food price index declines in August

    ECO currency challenges: Technical committee attributes delays to external shocks, others

    African leaders emphasize in-continent processing of mineral wealth at climate summit

    Indian investors commit $14 billion to Nigeria, to strengthen several Nigerian sectors

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

Emergency MPC meeting: Goldman Sachs projects 200 basis points hike in policy rate

August 16, 2022
in Banking And Finance, Local Economy, Top Stories
Share on FacebookShare on TwitterShare on Whatsapp

A global investment and research firm, Goldman Sachs, has predicted that the Bank of Ghana (BoG) will raise its policy rate by 200 basis points (bp) on Wednesday when it concludes an emergency Monetary Policy Committee (MPC) meeting called to respond to the current economic challenges.

This is according to the Daily Graphic.

The firm said in a research update issued on August 16, 2022 that the central bank would raise the rate from the current 19 per cent to 21 per cent in an attempt to calm the turbulence in the foreign exchange (FX) market and help ease inflationary pressures.

ADVERTISEMENT

It said the cedi had so far lost more than 50 per cent of its value and a rate hike could help ease the pressure.

The seven-member MPC, chaired by the Governor of BoG, Dr Ernest Addison, last stayed the rate at 19 per cent in July 2022, citing the need to stimulate growth at a time when inflationary pressures were easing.

Emergency meeting

The Goldman Sachs update was in response to an earlier notice from BoG that it will undertake an emergency MPC meeting Wednesday (August 17, 2022) to review recent developments in the economy.

The notice, issued last Monday, said the meeting would conclude with the announcement of the decisions of the committee.

Cedi’s challenges

In its research update, Goldman Sachs said the meeting came after an acceleration in the pace of depreciation of the cedi in the past two weeks.

It said the local currency lost almost 10 per cent of its value to the United States (USA) dollar in the past two weeks, amounting to a cumulative 50 per cent currency depreciation year-to-date.

“In our view, inflation and financial stability risks, stemming from this FX weakness, combined with the challenging domestic financing environment for the government, which has led the BoG to begin monetising the deficit have prompted the call for this meeting.”

“We expect the MPC to announce a 200bp policy rate hike to 21 per cent,” it said.

‘Dovish surprise’

Goldman Sachs said it noted a meaningful upside risk to its forecast, given the extent of FX and domestic financing pressures. It recalled that the MPC maintained the policy rate at 19 per cent at its July meeting, on account of growth headwinds and slowing sequential inflation prints.

It described the decision as “a dovish policy surprise.”

According to the firm, the consensus at the time was for the rate to be hiked to 20 per cent minimum or 21 per cent maximum.

“Since then, headline inflation (year-on-year) surprised to the upside in July and was stable in sequential terms at plus 3.1 per cent on month-on-month (37.2 per cent in annualised terms), a very elevated rate relative to the BoG’s target or eight per cent or 10 per cent.

Lack of urgency

Goldman Sachs also said it noticed some lack of urgency on the part of the government in clinching a deal from the International Monetary Fund (IMF) quickly to stabilise the economy.

“In our recent trip to Accra, one notable observation was the authorities’ perceived lack of urgency in concluding programme talks with the IMF (with locals expecting a six to nine-month timeframe), in spite of intensifying balance of payments (BoP), FX and fiscal financing pressures.

“We have argued that a delayed conclusion creates the risk of further deficit monetisation by the BoG, cedi depreciation and a decline in FX reserves, implying that the macroeconomic outlook may deteriorate further in the near term,” the investment and research firm said.

Accelerate IMF talks

It, however, noted that the currency pressure and the inability to finance the deficit could serve to increase the sense of urgency and ultimately prompt the government to accelerate IMF talks.

“In this regard, we will look for any update from BoG on IMF talks in its communique following tomorrow’s unscheduled rate-setting meeting,” the update concluded.

Wednesday’s emergency MPC meeting will be the second of its kind since 2020, when an earlier-than-usual one was called in March for the bank to respond to the emerging economic disruptions that followed the emergency of COVID-19 cases in the country and Africa as a whole.

 

Source: Daily Graphic
Previous Post

MTN Ghana introduces voucher distribution denomination change to prevent price disparity

Next Post

AGI reiterates calls for the implementation of policies to support businesses

Next Post

AGI reiterates calls for the implementation of policies to support businesses

Accra Kotoka International Airport Arrivals
ADVERTISEMENT
Citi Business News

© 2023 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

© 2023 Citi Business News - CitiBusinessNews.com by CNR Digital.