The Monetary Policy Committee of the Bank of Ghana (BoG) has cut its key lending rate to commercial Banks marginally with 100 basis points to 13.5 per cent.

According to Dr Ernest Yedu Addison, the central bank governor, the move was influenced by a pick up in economic activities and recovery from pre-pandemic levels.

The move is expected to impact on the cost of credit in the next two months.

The Governor said MPC met last week to deliberate on recent global and domestic developments and assessed the risks to the inflation and growth outlook.

"Since the last meeting in March 2021, global growth momentum has strengthened, underpinned by the continued policy support, mass vaccinations, and relaxation of restrictions, especially in advanced economies.

"These efforts have helped to improve prospects of a rebound in economic activity, and which has been reflected in the revised IMF April 2021 global growth projections to 6.0 per cent, up from 5.5 per cent in the January 2021 projections. Nonetheless, the continued spread of the virus in parts of the world, the emergence of new variants, and stalled vaccination efforts across emerging market and developing economies is continuing to cloud efforts at fighting the pandemic, creating some uncertainty which could undermine the global recovery efforts," he said.