BoG keeps policy rate unchanged for third consecutive time

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Photo: Dr. Ernest Addison, Governor Bank of Ghana

The Monetary Policy Committee (MPC) of the Bank of Ghana(BoG) has maintained the policy rate at 14.5 percent for the third consecutive time this year.

The decision, according to the MPC was taken to control inflationary threats and maintain price stability.

“The Committee’s view is that risks to the immediate outlook for inflation and growth are broadly balanced and decided to keep the policy rate unchanged at 14.5 percent,” Governor of the Bank of Ghana and Chairman of the MPC, Dr. Ernest Addison said at news conference.

The policy rate is the cost at which the central bank lends to commercial banks in Ghana.

The rate in general affects interest rates in the country.

In March 2020, the Bank of Ghana reduced the policy rate by 150 basis point to 14.5 percent as a measure of mitigating the negative impact of COVID-19 on the economy.

Since then, the committee has kept the figure unchanged.

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