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Ghana’s Central Bank Keeps Policy Rate At 14.5%

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The Central Bank Governor, Dr. Ernest Addison, observed the impact of the coronavirus pandemic on the country’s economy as he announced the policy rate was being maintained.

The Bank of Ghana (BoG) says it is keeping the country’s 14.5 percent policy rate unchanged.

Governor of the Central Bank, Dr. Ernest Addison told the press in Live Facebook address on Friday, May 15, 2020.

According to him, the Monetary Policy Committee of the Bank of Ghana took the decision to keep the policy unchanged.

Addison says that this was because of some risk to the inflation outlook.

It would be recalled that in March 2020, BoG reduced the policy rate by 150 basis points from 16 per cent to 14.5 per cent.

It was at the first time since 2019 that the BoG had dropped the policy rate.

Before then, the Central Bank had since 2019, maintained the rate for six consecutive times.

Dr Addison observed that
“The COVID-19 pandemic has disrupted economic activity, created uncertainty, and weakened global growth conditions.”

He said “Countries have imposed restrictions and social distancing measures, and in some cases lockdowns to slow the spread of the virus.”

“These measures have come at a cost to the global economy forcing fiscal and monetary authorities to implement unprecedented policy measures to deal with the economic fallout.”

“For instance, the U.S. Fed cut its policy rate by 150 basis points to a range of 0-0.25 percent in March 2020 and made US$1.5 trillion available for short-term interbank lending among other liquidity measures,” he added.

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