Bank of Ghana hikes policy rate to 14.5%

The Bank of Ghana has increased its policy rate to 14.5%, a 100 basis points jump from 13.5%, the governor of the central bank Mr Kwesi Amissah-Arthur announced today April 13, 2012 at a press conference in Accra.

This is the second time that the Bank of Ghana has raised the rate by 100 basis points this year. At its previous meeting in February 2012, the BoG hiked the rate from 12.5% to 13.5%.

Explaining the rate jump, Mr Amissah-Arthur, who also chairs the Monetary Policy Committee (MPC) of the BoG, told the press that “the upside risk to inflation outweigh the downside risks to growth”.

He said the Bank is closely monitoring developments and “will not hesitate to take additional measures if deemed necessary”.

By Ekow Quandzie