Bank of Ghana cuts policy rate to 13%
The Bank of Ghana has cut its policy rate to 13% today May 13, 2011.
The announcement was made by the governor of the central bank, Mr. Kwesi Amissah-Arthur at a press conference in Accra.
The rate has been pegged at 13.5% since July 2010.
Some of the factors that influenced the rate cut according to the governor included the country’s declining inflation rate. Inflation declined from 9.13% in March to 9.02% in April. In February the inflation rate was 9.16%.
Mr. Amissah-Arthur also said it was important to cut the rate further for the easing of credit by the commercial banks to businesses.
By Emmanuel K. Dogbevi
That is a good move by the treasury to increase lending by decreasing the interest rate. But the down side of it is inflation may kick back in down the road so as they do this they must watch the inflation rate carefully because we do not want to make the GH useless like before. The main aim is to keep our currencies value…
I hope that it cascades to businesses and individuals who are entangled
with bank loans.This is great news,keep it up govnor……..