The Monetary Policy Committee (MPC) of the Bank of Ghana has reduced its key lending rate to commercial banks in the country. The Committee reduced the policy rate by 100 basis points to 16 per cent.
This is the first time since March 2018 that the Bank of Ghana has reduced its policy rate for universal banks.
In March 2018, the Bank of Ghana reduced the rate by 200 basis points from 20 per cent to 18 per cent.
The development is likely to influence the cost of credit in the country.
According to the Central Bank, the move was influenced by a fairly stable outlook for the economy.
Speaking at a news conference after meeting to review the health of the economy, Bank of Ghana Governor, Dr Ernest Addison said they are also convinced about measures government is taking to stabilize the economy and check its rising expenditure.
Watch out for an insight into what the Policy Rate reduction actually means to your business finance and personal finance.