Monetary policy rate reviewed upwards to 17%

The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has increased the policy rate by 250 basis points from 14.5% to 17%.

This comes after the Committee of the Bank of Ghana, held its 105th meeting from Wednesday, March 16, to Friday, March 18, 2022, to review economic developments of the country.

The policy rate determines the rate at which the central bank lends to commercial banks. It also influences the interest rate on loans.

Bank of Ghana Governor, Dr Ernest Addison, attributed the increasing public debt stock, rise in domestic inflation, straining fiscal policy, among others as some contributing factors to the increase in the monetary policy rate.

Addressing journalists on Monday, March 21, 2022, Dr Ernest Addison said, “Under these circumstances, the committee has decided to increase the policy rate by 250 basis point to 17 percent.”

He stated that the Monetary Policy Committee is however confident that the ongoing discussions will lead to decisive policy reforms that will address underlining fiscal mismatches in the local economy, as well as, restore calm in the market.