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Business News of Monday, 23 November 2020


Bank of Ghana keeps 14.5% policy rate unchanged for 4th consecutive time

Governor of the Bank of Ghana, Dr. Ernest Addison play videoGovernor of the Bank of Ghana, Dr. Ernest Addison

The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has kept its monetary policy rate unchanged at 14.5 percent for a fourth consecutive time this year.

The decision, according to the central bank is attributed to growth indicators improving and reserve buffers remaining strong.

Addressing journalists at a press conference on Monday, November 23, Governor of the Bank of Ghana, Dr Ernest Addison explained inflation has edged closer to target with the economy gradually rebounding faster than expected.

"The fiscal and monetary policy measures, which have increased liquidity in the economy, appear not to be impacting inflation, partly due to the existence of the output gap. As a result, the Committee expects these conditions to support inflation to return to its central path by the second quarter of 2021," Dr Ernest Addison told journalists.

The decision to maintain the policy rate came after the committee held its regular three-day deliberations from Wednesday, November 18 to Friday, November 20, 2020 to review developments of the economy.

This will be the central bank's last MPC decision under the Akufo-Addo led administration ahead of the upcoming 2020 general elections.