Bank of Ghana to cut prime rate further as inflation falls
It is likely the central bank of Ghana will continue to cut its lending rate, the prime rate if the country’s inflation continues to drop.
A Bloomberg news report quotes the Bank of Ghana governor, Kwesi Amissah-Arthur as saying “the objective of monetary policy is to foster growth by further declines in interest rates as inflation falls.” He was speaking at an event of the Association of Ghana Industries (AGI) in Accra Thursday.
“There are strong indications that in the next few months inflation will further fall,” he said.
Ghana’s inflation which reached a five-year peak in 2009 keeps falling. The Bank of Ghana cut its prime rate to 18% for the first time in November 2009 in almost three years.
In November inflation dropped to 16.9%, the fifth consecutive time in the year from 18.04% in October.
Businesses have been pushing for a drastic cut in the prime rate to encourage borrowing for investments. This indicator therefore, is a positive pointer to what businesses in the country see as good for business.
By Emmanuel K. Dogbevi
It is likely the central bank of Ghana will continue to cut its lending rate, the prime rate if the country’s inflation continues to drop.
A Bloomberg news report quotes the Bank of Ghana governor, Kwesi Amissah-Arthur as saying “the objective of monetary policy is to foster growth by further declines in interest rates as inflation falls.” He was speaking at an event of the Association of Ghana Industries (AGI) in Accra Thursday.
“There are strong indications that in the next few months inflation will further fall,” he said.
Ghana’s inflation which reached a five-year peak in 2009 keeps falling. The Bank of Ghana cut its prime rate to 18% for the first time in November 2009 in almost three years.
In November inflation dropped to 16.9%, the fifth consecutive time in the year from 18.04% in October.
Businesses have been pushing for a drastic cut in the prime rate to encourage borrowing for investments. This indicator therefore, is a positive pointer to what businesses in the country see as good for business.
By Emmanuel K. Dogbevi