In
its quest to ensure macroeconomic stability, the Monetary Policy Committee of
the Bank of Ghana has maintained the policy rate at 19 percent.
This is the first time the Central Bank has
maintained the policy rate this year, after increasing it twice by 200 basis
points or more.
The rate, which is of keen interest to
businesses, signals the rate at which the Central Bank will lend to commercial
banks.
It
also subsequently influences average lending rates on loans to individuals and
businesses.
Addressing the media, on Monday, Governor of
the Central Bank, Dr. Ernest Addison explained that the decision to maintain
the policy rate at 19 percent was to allow the bank to observe the effect of
previous hikes on the country’s macroeconomic indicators, amid continued surge
in inflation.
The Central Bank’s decision follows calls by
some stakeholders for the Bank to stay the rate on the back of the continuous
increase the inflation rate.
Latest data from the Ghana Statistical Service
shows that prices associated with Transport, Housing, Water, Gas and
Electricity pushed the rate of inflation for June to hit 29.8 percent in the
month of June, a 2.2 percentage point increase compared to the 27.6 percent
recorded in May.
The 2.2 percentage points gap however comes as
the lowest increase recorded since February. This signifies a slow-down in the
inflation curve compared to previous months.
Source:citinewsroom