MONETARY POLICY COMMITTEE MEETS TO REVIEW GHANA’S ECONOMY

Quarterly meeting held by Ghana’s Central Bank’s Committee on Monetary Policies to review the country’s economy.

Bank of Ghana committee on monetary policies met on the 19th of January 2018 for its quarterly meetings to review Ghana’s economy. The meeting which is the first for this year will be concluded today 22nd January 2018, with the committee releasing the policy rate for the year.

The Central Bank in 2017 alone reduced the policy rate by 550 basis points.

The policy rate which is the rate at which the Bank of Ghana lends to commercial banks for onward lending to their consumers, was reduced from 25.5 percent in January 2017 to 20 percent in November 2017.

Despite the notable reduction in the policy rate, there is no corresponding reduction in the interest rate on loans issued by commercial banks.

Some other reductions according to the Bank of Ghana’s Annual Percentage Rates (APR) and Average Interest (AI) report includes, a reduction of the average base rate (that is the minimum rate charged on loans to consumers) from 27.6 percent in January 2017 to 25.7 percent as at December 2017.

 

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