The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has maintained its policy rate at 21 percent, citing drop in the risk to inflation resulting from lower oil prices on the international market.
wpid-Dr-Henry-Kofi-Wampah-in-bus-folder.jpgThe Governor of BoG, Dr Henry Kofi Wampah who is also the Chairman of the MPC noted that inflation, which peaked in the last quarter of 2014, has begun to decline in January, 2015 on the back of tight monetary policy stance, base effects and improved inflation expectations.
The Committee expressed concern about the rise in food inflation ahead of the lean season as well as the rising core inflation. However, the latest forecasts show that the disinflation is likely to continue through 2015, heading towards the target band of 8.0 ?2 percent later in 2016, he told journalists in Accra.
The MPC in November 2014 increased the policy rate by 200 basis point to 21 percent from 19 percent in a bid help to ease inflation which at the time stood at 16.9 percent, the highest since March, 2010.
The Policy rate is the rate at which commercial banks borrow from the central bank. It also has effect on interest rates. With the holding of the policy rate, the base rates of the all the 27 commercial banks in the country are expected to remain unchanged.

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