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
- Learn from AirtelTigo merger to save businesses, jobs - Carlos Ahenkorah
- GIPC signs MoU with German-African Business Association
- AGI focuses on 12 economic reforms in 2019
- Uganda deports MTN boss
- Expert cautions BoG as Savings and Loans sector cleanup looms
- How South Africa’s blackouts are crippling businesses
- GOIL shares customised Valentine's Day chocolates with customers
- GCAA sets up task force to investigate allegations of extortion, coercion at KIA
- Ghanaian scientists identify ‘Prekese’ seeds as potent natural fungicide
- Govt’s barcode innovation for fertilizers tackles theft
- Mac Attram to create millionaires with first Business Accelerator Boot Camp
- Oil production in Ghana to double by 2023– Ofori-Atta
- JP Morgan rolls out first US bank-backed cryptocurrency
- GNPC Foundation sees progress in ongoing projects in Western region
- Huawei to start Africa data centre services from March