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Business News of Friday, 1 February 2019

Source: Myjoyonline.com

BoG's policy rate cut should have been delayed - Economist

An Economic Analyst with Databank Group, Kwesi Boti has stated that the Bank of Ghana's Monetary Policy Committee should have delayed in its decision to cut the policy rate.

Mr Boti believes there are certain threats to the economy such as the effects of a depreciating cedi and the Central Bank should have taken note of this before taking a decision to cut the policy rate from 17% to 16%.

He spoke on the PM EXPRESS BUSINESS EDITION on the JoyNews channel on Multi TV Thursday.

Also on the same programme, Senior Economic Analyst at Databank Group, Courage Martey cautioned that the good progress that has been made in the monetary and fiscal side of the economy and we should not be complacent and repeat mistakes of the past where the economy was characterized by poor inflation rates and other weak economic indicators.

The Monetary Policy Committee of the Bank of Ghana cut the policy rate on Monday 28th January 2019 by 100 basis points from 17% to 16%.

The next meeting is in March where the economy will be reviewed with a decision on where the rate will go.

The rate is a tool used to control inflation and has an influence on lending rates in the economy.