The Monetary Policy Committee of the Bank of Ghana has kept its policy rate unchanged.
The Central Bank held its key lending rates for Commercial Banks at 17 per cent, the third time this year.
The development could largely result in little change in the cost of credit in the country.
Speaking at a press conference in Accra, Governor of the Bank of Ghana, Ernest Addison cited threats to economic growth for the move and therefore want to be careful with any monetary policy action that it takes.
Developments in the banking sector
According to the governor, 22 banks have currently met the minimum capital requirements, but he was optimistic that most of them would meet it.
He added that two per cent of the banks in the country are currently in talks to merge before the end of this year.
The key Financial Sector Indicators (FSIs) have broadly shown improvements since the last MPC meeting, reflecting gains from the on-going reforms in the sector.
The gains are expected to further increase after the recapitalization process is completed in December 2018.
The industry’s total assets increased to GH¢106.3 billion in October 2018, representing a year-on-year growth of 19.6 percent. Of the total assets, advances and investments constituted 33.4 percent and 40.3 percent respectively.
The Governor of the Bank of Ghana argued that even though a lot is being done to firmly stabilize, long-term sustenance would largely depend on fiscal measures as well.
According to the 2019 Budget, the local currency has depreciated by a little over seven per cent ending October this year compared to the same period last year.
Figures picked up from major banks in forex market shows that the cedi is currently trading at around 4 Ghana cedis 90 pesewas to one dollar.
Have your say
More Business Headlines
- Upper West: 1,022 bags of maize harvested under PFJs
- Gov’t, Labour agree to build consensus on dev’t issues
- Ofori-Atta steers World Bank/IMF Development Committee on global dev't issues
- Airports Company considers reserving Terminal 2 for home-based carrier
- Gov't working to reduce aviation fuel, other airline taxes
- GNPC Foundation produces best ever local rice
- Good or bad? GUTA, AGI disagree on reduction of import duties
- Emirates rolls out special Easter menus
- Today's students are 'irrelevant' to tomorrow’s market - Ken Thompson
- Old Mutual Ghana rewards top performing staff with trip to Zaina Lodge
- Pay your taxes to ensure success of Ghana Beyond Aid policy – GRA official
- PDS blames GRIDco for Thursday’s intermittent power outages
- GRA to introduce electronic Vehicle Income Tax payment
- Aviation Ministry details why KIA is not for sale
- World's most miserable economy has seven-figure inflation