Bank of Ghana cuts policy rate by 150 basis points to 14% amidst economic uncertainty
The Monetary Policy Committee of the Bank of Ghana has reduced the policy rate by 150 basis points to 14 percent, marking the second consecutive cut this year. The decision, announced by Governor Dr. Johnson Asiama on March 18, aims to support economic growth while managing inflationary pressures.
The committee considered the impact of rising geopolitical tensions in the Middle East on Ghana’s economy, with Dr. Asiama noting that uncertainty in the external sector has increased. However, the bank’s forecast suggests headline inflation will remain within the medium-term target.
“The MPC has considered current economic conditions, including subdued credit growth and declining non-performing loans, and decided a reduction in the policy rate is appropriate to stimulate lending and investment,” Dr. Asiama said. The cut is expected to ease borrowing costs and promote economic activity.
The banking sector remains strong and well-capitalized, despite slower credit growth, with total assets increasing and non-performing loans declining. “Our goal remains to ensure a stable financial system while supporting households and businesses to access affordable credit,” Dr. Asiama added.
[18/03, 21:16] Meta AI: Bank of Ghana Cuts Policy Rate by 150 Basis Points to 14% Amidst Economic Uncertainty
The Monetary Policy Committee of the Bank of Ghana has reduced the policy rate by 150 basis points to 14 percent, marking the second consecutive cut this year. The decision, announced by Governor Dr. Johnson Asiama on March 18, aims to support economic growth while managing inflationary pressures.
The committee considered the impact of rising geopolitical tensions in the Middle East on Ghana’s economy, with Dr. Asiama noting that uncertainty in the external sector has increased. However, the bank’s forecast suggests headline inflation will remain within the medium-term target.
“The MPC has considered current economic conditions, including subdued credit growth and declining non-performing loans, and decided a reduction in the policy rate is appropriate to stimulate lending and investment,” Dr. Asiama said. The cut is expected to ease borrowing costs and promote economic activity.
The banking sector remains strong and well-capitalized, despite slower credit growth, with total assets increasing and non-performing loans declining. “Our goal remains to ensure a stable financial system while supporting households and businesses to access affordable credit,” Dr. Asiama added.
