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 from today September 22, 2020 to Friday September 25, 2020 hold its regular meetings.

For the committee’s 96th 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.

According to a statement issued by the Central Bank: “The Committee’s assessment of the situation and interventions shall be communicated accordingly on Monday, September 28, 2020.”

The Committee is also expected to announce the Monetary Policy Rate which is of keen interest to businesses as it influences the interest rate on loans and determines the rate at which the central banks lend to commercial banks.

At its 95th meeting in July this year, the central bank kept its monetary policy rate unchanged at 14.5 percent with the Governor of the Central bank, Dr. Ernest Addison attributing the verdict to disruptions in the economy triggered largely by the COVID-19 pandemic.

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

Meanwhile, in March this year, the Committee's meeting 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.

An economist Professor, Dr Godfred Bokpin in an earlier interaction with GhanaWeb admitted 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.