Business News Sun, 23 May 2004

BoG Reduces Prime Rates

The Bank of Ghana (BoG) has reduced the prime rate from 20.0 per cent to 18.5 per cent.

Announcing this at a news conference in Accra last Friday, the Governor, Mr Paul Acquah explained that the prime rate has appropriately been positioned since it was being set as a binding policy commitment.

He said the decision was taken given the risks in the economic outlook and for inflation.


The Governor said headline inflation dropped from 22.4 per cent in January to 11.3 per cent in February and 10.5 per cent by March, but ticked up to 11.2 per cent in April as a result of the surge in food prices during that month.

He said however, that the underlying monthly increases in the price index since April last year, remained within a range that was the lowest in recent years, with considerably reduced volatility.

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