Story by: Fred Yaw Sarpong
The Monetary Policy Committee (MPC) of the Bank of Ghana will commenced its 56th regular meeting on Monday, 29th May 2013 to review developments in the economy.
The MPC meeting is expected to end on Wednesday, 31th July 2013 with a decision on the appropriate positioning of the Bank’s Policy Rate. Currently, the BoG’s policy rate stands at 16%.
The Central bank’s policy rate serves as the benchmark for the commercial/universal banks in the country in setting their individual base lending rates.
It is expected that the committee, headed by the Governor, Dr. Henry Kofi Wampah will announce to the general public the basis of increasing or reducing or maintain the policy rate.
In order to increase the policy rate, the committee will take into consideration the risks to the inflation outlook and whether it outweighs the risks to growth.
Apart from announcing the Policy Rate the committee of the central bank will also review Global Economic Developments, and Domestic Economic Conditions.
On Domestic Economic Conditions, the regulator of the banking industry in Ghana will take into consideration Growth and Inflation, Government Fiscal Operation, Monetary and Banking Sector Development as well as External Sector Developments.