The Bank of Ghana’s Monetary Policy Committee boosted the Policy Rate – the rate at which it lends to commercial banks – by 200 basis points to 19 percent for the second time in a row.
Dr. Ernest Addison, the Governor, made the announcement.
Because of the increase in the Central Bank’s monetary policy rate, borrowing costs are projected to rise for at least the next two and a half months.
Prior to the Policy Rate announcement, the Central Bank stated its objective to control inflation in order to lower interest rates and, as a result, lending rates.
The Governor stated that growing inflation has surprised his staff, but that a decisive decision will be made to address the problem.
“It’s a problem that perplexes us all in some ways. Inflation in Ghana was near single digits a year ago, especially in the 7.5 percent range, and now it is in the upper double digits. It’s a highly complicated environment, and as you know, we’ve just emerged from COVID-19. However, Ghana was fortunate in that it was able to weather the effects of COVD without incurring excessive interest rates.”