100 BASIS POINT CUT FOR BANK OF GHANA POLICY RATE

Central Bank of Ghana reduces policy rate from 25.5 to 20 percent

After a meeting of Monetary Policy Committee of the Bank of Ghana, the Central Bank have cut its benchmark interest rate by 100 basis points to 20 percent.

The policy rate which is the prime rate, at which the central bank lends to commercial banks, was previously at 25.5 percent. The Governor of the bank, Ernest Addison said the reduction was due to a drop in consumer inflation and a steady economic growth.

In the earlier three meetings held by the committee this year, the rates have in all occasion be reduced by  450 basis points.