BY: Naa Anyema Collison
The Monetary Policy Committee of the Bank of Ghana has reduced the policy rate to 13.5 percent
This is In its quest to review developments in the economy and take the necessary steps to ensure financial and economic stability. This is a 100 basis points reduction in the rate which had been kept unchanged at 14.5 percent for at least six consecutive times.
The Monetary Policy Committee, MPC, after concluding its meeting on Monday (May 31, 2021) said the decision was informed by the improvement in macroeconomic conditions on the global front and the local front.
The policy rate determines the rate at which the central bank lends to commercial banks, which also determines how much interest people pay on their loans.