The Monetary Policy Committee of the Bank of Ghana has maintained its policy rate at 26 percent.
The Central Bank Governor Dr. Abdul Nashiru Issahaku attributed the decision to a recent drop in inflationary trend which currently stands at 18.4 percent.
Addressing the media at the end of the 71st regular MPC meetings to review developments in the economy, Dr. Nashiru Issahaku said the current economic trends supported the decision to stay the monetary policy rate.
This is the fourth time that the policy rate has been maintained since January this year.
Announcing the new rate at a media briefing on Monday, the Governor of the Bank of Ghana, Dr. Abdul Nashir Issahaku said: ” these observed trends in inflation over the first half of 2016 have largely been influenced by increases in the prices of petroleum products, utility tariffs and food prices. Since most of these adjustments are cost push in nature, the current monetary policy stance is deemed appropriate, and hence maintained.
The policy rate is indicative of the rate at which the Central Bank lends to commercial Banks. This means you should not expect to more on the interest on loan you are servicing or intends to contract.