Banking

Bank of Ghana keeps policy rate at 14.5%

Governor of Bank of Ghana, Dr Ernest Addison

The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has kept its 14.5 per cent policy rate at which it lends to commercial banks.

This is about the fourth time since March this year that the central bank has kept its key lending rate unchanged.

Speaking at a news conference Monday, the Governor, Dr Ernest Addison noted there is still some risk on the fiscal front as the effects of Covid-19 hits hence the need to hold the rate at bay.

Asked about the country’s rising debt stock, which has hit ¢273. 8 billion, he noted that it had to do with Covid-19 related expenditure and banking sector clean up.

On the depreciating cedi, the Governor said the central bank is looking at adding about $300 million to its international reserves by the end of the year.

This should put it in a strong position to deal with the expected pressure in the first quarter of 2021, he added.