BoG’s MPC commences three-day meeting to evaluate Ghana’s economy

The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) is scheduled to hold its regular meetings from today Wednesday, July 22 to Friday, July 24, 2020.

For the committee’s 95th meeting, it is expected to initiate proposals for the formulation of the monetary policies of the central bank, evaluate Ghana's economy and provide statistical data, advice and necessary steps for the formulation of monetary policies.

Following the meeting, the MPC is expected to on Monday, July 27, 2020 announce the Monetary Policy Rate which is of strong concentration to businesses as it influences the interest rate on loans and determines the rate at which the central banks lend to commercial banks.

Due to the coronavirus outbreak, many businesses have been hugely impacted, with some having to fold up as a result of the pandemic.

The Central Bank on Friday May 15, 2020 kept its policy rate unchanged at 14.5 percent following a sudden rise in inflation.

This follows an earlier March 2020 meeting which saw a 150-basis-point reduction in the monetary policy rate to 14.5 percent, with some commercial banks impressed upon to further slash on lending rates to ease access to credit.

The Governor of the BoG, Dr Ernest Addison earlier explained the central bank’s latest forecast points, was to elevate risks to the inflation outlook in the forecast horizon, underscored by the recent jump in headline inflation.

Meanwhile, an economist Professor, Dr Godfred Bokpin speaking in an interview with GhanaWeb admits that there are inherent inflationary risks in the fiscal injection by the Bank of Ghana as he expects these risks, to be drastically minimised with efficient investment and greater value-for-money mechanisms put in place.

“The fiscal injection when done properly, could stimulate growth or help us in the recovery process faster than we expected. It is more hurtful to do nothing now for the economy to come to a halt,” he cautioned.

Mr Bokpin adds that he also expects the Finance Minister, Ken Ofori-Atta in his mid-year budget review to announce some measures for investments towards the health and agriculture sectors to spur economic for government and the nation.