BoG maintains policy rate at 21%

The Bank of Ghana has maintained its policy rate at 21 percent. Current decline in the country's inflation rate and the fall in the price of crude oil on the world market have played a major role in maintaining the monetary policy rate.

The last time the policy rate was increased was in November last year. Inflation figures peaked in the last quarter of 2014. This pushed the Bank of Ghana to increase the policy rate by 200 basis points to 21 percent to control inflation.

The Central bank has once again decided to maintain this figure considering the growth outlook. Inflation for the first month of this year, January dropped to 16.4 percent and is expected to further decline.

Governor of the bank of Ghana, Dr. Henry Kofi Wampah remains confident inflation target of 8 percent is still achievable by 2016.

Analysts and economists had said it would be prudent for the central bank to maintain the policy rate considering the fall in crude oil prices. The policy rate is expected to further serve as a benchmark for the various banks in setting their base lending rates.