Bank of Ghana Monetary Policy Rate maintained for fourth consecutive month

Addressing the media at the 72nd meeting of the MPC, Governor of the Central Bank, Dr. Abdul Nashir Issahaku  identified  the stability of the Ghana Cedi as one of the main reasons why the policy was maintained.

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The Bank of Ghana has maintained the policy rate at 26 percent for the fourth consecutive time  since January, 2016.

Addressing the media at the 72nd meeting of the MPC, Governor of the Central Bank, Dr. Abdul Nashir Issahaku  identified  the stability of the Ghana Cedi as one of the main reasons why the policy was maintained.

Though the country’s inflation has increased to 16.9 percent in August 2016, from the 16.7 percent recorded the month before, Dr. Issahaku believes it formed part of the basis to maintain the rate at 26 percent.

 In addition, the central bank has been unable to meet its inflation target of 8 percent plus or minus 2 percent. At the last meeting in July, the Governor announced that the central bank has shifted the forecast for single digit inflation to the third quarter of 2017.

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Meanwhile, Economist, Dr. Lord Mensah says the move was not surprising.

“I do not think that now that we are drawing closer to the fourth quarter and the festive season, the MPC will be prepared to reduce the policy rate as there will be pressure on the demand for the dollar. So I am expecting that if we have that reserves, then the MPC will then look at it and maintain the rates,” Dr. Mensah said in an interview with Accra-based Citi FM.

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