BOG to offload shares in ADB, policy rate drops to 16%

The Bank of Ghana and government are gearing up to offload their shares in the Agricultural Development Bank (ADB) in three years to the public.

Government together with the central bank control nearly 90 percent of the bank’s shares affecting trading on the bourse.

It emerged the Bank of Ghana annulled the acquisition of shares of Agriculture Development Bank held by Belstar Capital, Starmount Development company Ltd, SIC Financial Services Ltd and EDC Investments Ltd because of reservations the regulator had but now wants to free its hands.

Dr. Addison observed privately owned banks perform better calling in question the National Investment Bank Limited (NIB) module of running as a universal bank.

He held hat a lot of changes must happen at the NIB including restructuring to become a developmental finance institution to better serve the people.

Meanwhile at a press conference to announce the new 16 percent policy rate on Monday, January 28, Dr. Addison stated that the steady decline of inflation from 15.4 percent at the end of 2016, to 11.8 percent in 2017 and further down to 8.4 percent in 2018, supported in large part by non-food inflation also influenced the MPC to reduce the figure.

The Monetary Policy Committee reduced the policy rate by 100 basis points to 16 percent believing gains with macro stability are favourable economic conditions.

The policy rate is the rate at which the central bank lends to commercial banks in the country.