The Monetary Policy Committee of the Central Bank has reduced its policy rate from 20 to 18 percent.
The policy rate is indicative of the rate at which the Bank of Ghana lends to Commercial Banks in the country.
This could reduce the interest rate you pay on the loans you are about to access.
Governor of the Central Bank, Dr. Ernest Addison explaining to journalists, said Global inflation is on a gradual upturn in advanced economies, although core inflation remains subdued.
This latest development, combined with the closure of output gaps and stronger wage growth in some advanced countries could lead to faster monetary policy normalization.
He added that Prices of Ghana’s main primary exports on the international commodity market have rebounded somewhat over the first two months of 2018.
Crude oil prices have gained the most since the fourth quarter of 2017 reaching US$69.1 per barrel in January 2018, but have since moderated on the back of increased production and rising US shale output.
Gold prices have also performed better, largely driven by a weak US dollar and steady purchase and holdings of gold by central banks. Following some price depression in 2017, on account of excess supply, cocoa prices are gradually on the mend.
The main price drivers are strong grind data from Europe, and renewed concerns of adverse short-term weather patterns across the West African sub-region.
Meanwhile, the Central Bank has confirmed the implementation of the Ghana reference rate which will come into force next week.
This is expected to bring some transparency in the calculation of interest rate.
Source: Ghana/Starrfmonline.com/103.5FM
