The Bank of Ghana (BoG) has reduced its benchmark lending rate to 13% from the previous rate of 13.5%. This is the first time this year, that the BoG has made changes to the rate as it has previously maintained it on three occasions. The decision to reduce the rate was announced after a week long meeting by the Monetary Policy Committee (MPC) to review the current state of the economy. Governor of the Central Bank and chairman of the MPC, Kwesi Amissah-Arthur told Joy News the lending rate was cut to stimulate economic growth. At press conference to announce the new rate, Mr. Amissah-Arthur explained that “the threats to inflation has diminished due to better domestic production of food [and the] effects of petroleum price adjustments that was effected in January.” He stated that projections indicate that the current external payments deficit is better than what was attained a year ago. "Our analysis suggests that the real exchange rate of the cedi is broadly aligned with economic fundamental. The bank of Ghana will continue to preserve competitiveness while the same time minimizing volatilities in the foreign exchange market," He revealed that the MPC expects inflation to hover around 9 percent on a yearly basis going forward. This he said will be driven by a "sustained and stable macro economic environment anchored in a sound monetary and fiscal policy framework." Story by Derick Romeo Adogla/Myjoyonline.com/Ghana