The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has cut the rate at which it lends to commercial banks to 27 per cent from 29 per cent.
Speaking at a News Conference a while ago the Chairman of the committee and Governor of the BoG, Dr Ernest Addison noted that the action was influenced by a favorable economic outlook.
He explained that since the first quarter of the year, headline inflation has declined for 5 consecutive months by 5.4 percentage points.
“Given these considerations, the Committee decided to lower the Monetary Policy Rate by 200 basis points to 27.0 per cent”, he said.
He added that core inflation has also declined sharply over the same comparative period by 6.9 percentage points.
“The latest forecasts show that inflation will continue to ease towards the range target of 13-17 per cent for the year and steadily track back towards the medium-term target of 6-10 per cent by the end of 2025, barring unanticipated shocks. At the current juncture, the committee judged the risks to the inflation outlook as fairly balanced. 23”, he said.