The Bank of Ghana (BoG) has raised the monetary policy rate by 50 basis points.
The increase has pushed the rate to 30 percent.
The bank said the new rate was announced based on the review of economic trends in the last two months.
Governor of the BoG, Dr. Ernest Addison, disclosed this at a press briefing after the bank’s 113th Monetary Policy Committee meeting.
“…Enhancing revenue mobilisation and aligning expenditures with revenue inflows will be key in forging ahead with fiscal cash elevation efforts to help foster credibility, restore confidence and support the disinflation process and anchor stability. Implementation of the IMF-supported extended credit facility programme for the first six months in 2023 is broadly in line with the performance targets of June 2023. While the programme envisaged a draw-down of the BoG of close to $100 million, the BoG build reserves in excess of $1 billion.
“Regarding the monetary policy consultation clause, inflation as of June 2023 is within the target band, after declining consistently between January to April. Headline inflation increased in May and June on account of a variety of factors including higher food prices, implementation of new tax measures and utility tariff adjustment,” he stated.
Let the rate announced, the cost of borrowing at banks has risen by 0.5 percent from the previous rate of 29.5 percent held by the Central Bank in May 2023.
By: Rainbowradioonline.com/Ghana
