Bank of Ghana to Reduce Monetary Policy Rate

Ghana’s Central Bank

 

GN Research, a subsidiary of Groupe Nduom, has predicted that the Bank of Ghana is likely to reduce the monetary policy rate (MPR) by 100 basis point to 24.5% from its current 25.5 %.

In a press statement from the Research group, the falling inflation trend, stabilization of the Cedi and the need to consolidate government fiscal policy are factors that will affect the monetary policy rate.

The Monetary Policy Committee (MPC) of the central bank will announce a new Monetary Policy Rate (MPR), on Monday March 27, 2017, aimed at ensuring price stability and low inflation to ensure stable currency and support output and employment growth.

This will be the 75th regular meeting of the MPC since the BOG’s introduction of the policy rate as a central policy tool for its inflation targeting regime in 2002

According to the group, “the last MPC meeting in January upheld the Monetary Policy Rate (MPR) at 25.5%, amidst calls by the business community for a lower rate because of the negative effects of the high rate on the domestic economy”

“Given the falling inflation trends, the performance of the cedi especially during 3rd week in March following the auctioning of the 120 million dollars and the issuance of the bond, the upsurge in investor confidence and the general positive outlook for the economy, the Bank of Ghana is likely to reduce the monetary policy rate to complement government’s efforts. “ the statement concluded.

 

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