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Business News of Monday, 31 May 2021


Bank of Ghana's MPC announces policy rate decision today

The Bank of Ghana Headquaters The Bank of Ghana Headquaters

• The Bank of Ghana will at its 100th MPC press conference announce its policy rate decision

• The Committee commenced its scheduled meeting for the third time of the year from May 26-28, 2021

• Some economists have predicted the rate will be maintained at 14.5% for a seventh consecutive time

The Bank of Ghana’s Monetary Policy Committee will on Monday May, 31 2021 announce its decision taken on the policy rate.

The development comes after the Committee from May 26-28, 2021, commenced its third scheduled meeting of the year to review economic developments of the country to ascertain its monetary policy rate decision.

Some economists have predicted the central bank is expected to maintain its policy rate at 14.5 percent for a seventh consecutive time.

According to Professor Peter Quartey, the prediction is hinged on factors based on the economic developments of the country in the past few months, which do not support a reduction in the policy rate.

“The factors that they normally look at are the exchange rate, inflation expectations and even economy, as in whether there is overheating in the economy and debt, and many other things.”

“Looking at the fundamentals and judging from the way the exchange rate has been relatively stable, inflation is likely to inch up marginally and I don’t see much overheating in the economy. My expectation is that the policy rate will be maintained again,” he earlier told Citi Business News in an interview monitored by GhanaWeb.

At the Bank of Ghana’s 99th MPC meeting, it kept its monetary policy rate unchanged at 14.5 percent, a figure which was has remained the same since March 2021.

The policy rate is of key interest to businesses operating in the country as it influences the interest rate on loans and determines the rate at which the central bank lends to commercial banks.