Ghana’s Central Bank at its last Monetary Policy Committee (MPC) meeting for 2020 kept the monetary policy rate at 14.5 per cent. The rate has remained unchanged since it was reduced by 150 basis points to 14.50% in March 2020. The monetary policy rate influences money supply and credit in an economy.
Speaking at a press briefing on Monday, November 23, 2020, Dr Ernest Addison, the MPC Chairman said the maintenance of monetary policy rate comes on the back of general improvement in macroeconomic conditions “relative to conditions at the time of the last MPC meeting in September 2020”. He added that, global GDP growth rate, business and consumer confidence on the domestic front have rebounded.
According to Dr Addison, although the banking sector witnessed strong growth in terms of investments and deposit, the COVID-19 pandemic impact on Non-Performing Loans (NPLs) needs continuous surveillance. The MPC’s next meeting is scheduled to take place from 20-22 January, 2021 and the final decision would be made known on January 25, 2021.
Source: Sampson Kesse (Real Estate Times Africa)
