Accra (Graeter Accra), 29 Jan. '99 - The Bank of Ghana (BOG) yesterday reduced the bank rate (rediscount rate) from 37 per cent to 32 per cent for the third time since last September. A statement signed by Mr James A. Odei, Acting Secretary of BOG, and made available in Accra said the new rate takes immediate effect. The statement said the action is in response to the sustained decline in monetary expansion and rate of inflation, as well as the relative stability of the exchange rate. The Central Bank urged all commercial banks to respond accordingly to the new change by reducing the cost of lending and borrowing. The old bank rate was fixed on November 12, 1998. The Bank of Ghana said it is encouraged to reduce the bank rate as a result of the modest growth in year-on-year broad money supply of 17 per cent and the steady decline in the rate of inflation to 15.7 per cent at the end of December, last year. "These developments reflect continuing improvements in the macro- economic conditions of the Ghanaian economy." The statement said "the Bank of Ghana assures the nation that it will continue to pursue prudent monetary policies in 1999 to ensure the achievement of financial stability of the economy and thus provide a sound basis for the sustained growth of the economy in the medium-term".
Accra (Graeter Accra), 29 Jan. '99 - The Bank of Ghana (BOG) yesterday reduced the bank rate (rediscount rate) from 37 per cent to 32 per cent for the third time since last September. A statement signed by Mr James A. Odei, Acting Secretary of BOG, and made available in Accra said the new rate takes immediate effect. The statement said the action is in response to the sustained decline in monetary expansion and rate of inflation, as well as the relative stability of the exchange rate. The Central Bank urged all commercial banks to respond accordingly to the new change by reducing the cost of lending and borrowing. The old bank rate was fixed on November 12, 1998. The Bank of Ghana said it is encouraged to reduce the bank rate as a result of the modest growth in year-on-year broad money supply of 17 per cent and the steady decline in the rate of inflation to 15.7 per cent at the end of December, last year. "These developments reflect continuing improvements in the macro- economic conditions of the Ghanaian economy." The statement said "the Bank of Ghana assures the nation that it will continue to pursue prudent monetary policies in 1999 to ensure the achievement of financial stability of the economy and thus provide a sound basis for the sustained growth of the economy in the medium-term".
