Policy rate increased substantially to 17%

As expected, the Monetary Policy Committee of the Bank of Ghana has increased the policy rate – the rate at which it lends to commercial banks – by 2.5% percent to 17%.

The decision is due to the current pressures on the economy, the uncertainty about the economic outlook and developments in Russia – Ukraine, which has pushed fuel prices up astronomically.

The move to adjust the base lending rate of the Central Bank is expected to control the rising inflation and check the rapid depreciation of the cedi.

However, cost of loans is expected to go up with immediate effect. This means cost of living, consumer spending and cost of doing business is expected to go up.

Source:myjoyonline