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Business News of Wednesday, 21 July 2021


Bank of Ghana’s MPC begins scheduled meetings to review Ghana’s economy

The Bank of Ghana Headquaters The Bank of Ghana Headquaters

•The Bank of Ghana's MPC has begun its regular meetings to review economic developments of the country

•The meeting will take place from July 21 to 23, 2021 with a press conference scheduled for Monday July 26, 2021

•At the central bank's 100th meeting, it slashed the policy rate by 100 basis point at 13.5 from 14.5 percent

The Bank of Ghana’s Monetary Policy Committee will from today July 21 to July 23 commence its scheduled meetings to review economic developments of the country.

The meeting will entail the initiation of proposals for the formulation of the policies of the central bank, provision of statistical data among others.

Governor of the Bank of Ghana, Dr Ernest Addison who is also Chairperson of the Monetary Policy Committee is expected to take decisions that will influence the cost of credit in the country for the next three months of this year.

Among such decisions will be a review of the monetary policy rate which was slashed by 100 basis point at 13.5 from 14.5 percent at the central bank's 100th meeting.

Dr Ernest Addison earlier explained the decision was based on risks to the country's inflation outlook remaining muted in the near term while consumer inflation is expected to remain within the central bank's target band of 8% plus or minus two percentage points in the next quarter after falling to 8.5% in April 2021 due to lower food price inflation.

“Risks to the inflation outlook remain muted in the near-term…the Monetary Policy Committee under these circumstances decided to lower the monetary policy rate by a hundred basis points to 13.5%,” the governor said.

“The Committee will continue to monitor price developments closely and take appropriate action, where necessary, to contain all potential pressures to the inflation outlook,” Dr Addison added.

The monetary policy rate influences the interest rate on loans and determines the rate at which the central bank lends to commercial banks.

Meanwhile, the Bank of Ghana’s MPC will update the press on its decisions taken on Monday July 26, 2021.