BoG maintains policy rate at 14.5%
The Bank of Ghana (BoG) has maintained its policy rate at 14.5%.
The Governor of the Central bank, Dr. Ernest Addison, addressing a briefing today attributed the decision to uncertainties in the financial sector caused largely by the Covid-19 pandemic.
The central bank in March this year, reduced the rate by 150 basis points from 16 percent to 14.5 percent, and the figure was maintained in May 2020.
Dr. Addison explained maintaining the rate was to ensure price stability as well as support businesses amidst the Covid-19 pandemic.
“The Committee was of the view that the current extraordinary circumstances, with a widened budget deficit and a residual financing gap, would require some monetary restraint to preserve the anchors of macroeconomic stability. In the circumstances, the Committee decided to maintain the policy rate at 14.5 percent”
Read the full statement from BoG below