•The MPC at its 100th meeting slashed the rate by 100 basis points at 13.5 from 14.5 percent.
•The rate will be of keen interest to businesses operating in the country
The Bank of Ghana’s Monetary Policy Committee is set to announce its latest decision on a new policy rate today July 26, 2021.
This comes after the Committee commenced its scheduled meetings last week to review economic developments of the country.
Governor of the Bank of Ghana who is also Chairperson of the Monetary Policy Committee is expected to make the announcement of the policy rate decision that will influence the cost of credit in the country for the next two months of this year
At the Committee’s 100th meeting, the central bank slashed the policy rate by 100 basis points at 13.5 from 14.5 percent.
Dr Ernest Addison earlier explained the decision was based on risks to the country’s inflation outlook remaining muted in the near term while consumer inflation is expected to remain within the central bank’s target band of 8% plus or minus two percentage points, in the next quarter after falling to 8.5% in April 2021 due to lower food price inflation.
“Risks to the inflation outlook remain muted in the near-term…the Monetary Policy Committee under these circumstances decided to lower the monetary policy rate by a hundred basis points to 13.5%,” the governor said.
“The Committee will continue to monitor price developments closely and take appropriate action, where necessary, to contain all potential pressures to the inflation outlook,” Dr Addison added.
The monetary policy rate influences the interest rate on loans and determines the rate at which the central bank lends to commercial banks.