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BoG maintains Policy Rate at 16 percent

BoG maintains Policy Rate at 16 percent

The Governor of the Central Bank, Dr. Ernest Addison, has announced that the Monetary Policy Committee (MPC) has decided to maintain the policy rate at 16 percent so as to make informed decisions on the interest rate and the currency.

“The decision of the committee to keep the policy rate unchanged is to help check the interest rate and also control prices in the financial sector,” he stated.

He said the MPC is determined to closely monitor the sector and will not hesitate to immediately take decisive policy actions should the risks perceived by the bank materialize.

The Central Bank, Dr. Ernest Addison announced this when he engaged journalists to brief them on the monetary policy rate for banks.

Dr. Addison indicated that on the domestic front, growth remains relatively strong, adding that the negative output gap seems to be closing but at a modest pace.

He, however stressed that the Gross Domestic Product (GDP) growth for this year is projected at 7.6 percent, even though, the GDP growth for 2018 was projected at 5.6 percent.

“The non-oil GDP is projected to expand at 5.8 percent with an average growth of 6.1 percent for the first quarter of 2018″

The Governor indicated that it is a major factor for government to conclude the IMF bailout programme and as well needed to remain focused in the implementation of prudent policies that would anchor the hard-earned stability in the macroeconomic conditions.

He announced the government’s intention to inject a reasonable sum of money into the microfinance sector to strongly sustain the sector.

Source: Nii Aflah Sackey

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