Bank of Ghana keeps policy rate at 16% on balanced growth outlook

Ghana’s central bank has maintained its policy rate at 16%, the second time this year.

The Bank of Ghana (BoG) announced the rate today September 18, 2013 citing a balanced economic growth outlook.

According to the Governor Dr Kofi Wampah, the central bank’s monetary policy committee has observed a pick-up in the country’s economic activities despite risk to inflation.

Ghana’s inflation rate in August 2013 fell marginally to 11.5% after six consecutive months of increases hitting 11.8% in July 2013.

The BoG noted that softening consumer sentiments may also pose a downside risk to the growth outlook.

“On the balance of risks, the Committee held the view that risks in the outlook for inflation and growth are balanced and therefore decided to keep the policy rate unchanged at 16%,” Dr Wampah told reporters in Accra.

The BoG on July 31, 2013 maintained its policy rate at 16% citing slackening growth in emerging market economies, continuous dip in commodity prices in international markets and the slow growth in the US economy.

The central bank in May 2013 increased the policy rate  by 100 basis points to 16% from 15%.

By Ekow Quandzie