The Monetary Policy Committee (MPC) of the Central Bank has reduced the Policy Rate to 13.50% from 15.00%.

The Policy rate fell by about 150 basis points. That represents 1.50 percentage points.

The reduction follows deliberations by the Monetary Policy Committee of the Bank of Ghana. Previously called the Prime-Lending Rate, the Policy rate, essentially gives an indication of the direction of the general interest rates charged on loans by banks. 

 The reduction surpasses the expectations of some industry players who predicted a little under 100 basis points or a percentage point in the policy rate.

The recent attainment of a single-digit inflation rate of 9.52 percent may have put pressure on the Central Bank to further reduce the policy rate beyond industry expectations. 

The last announcement was in April which saw the Prime-Lending Rate reduced by a 100 basis points or 1 percentage point from 16.00% to 15.00% percent.




citifmonline