MPC meeting ends…likely to review policy rate upward

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    Dr Henry Wampah, BoG Governor

    The Monetary Policy Committee of the Bank of Ghana has closed from its meeting on the health of the economy for a likely upward review of the policy rate next week.

    The committee held its first meeting on Monday to assess figures from some sectors of the economy.

    The central bank’s move is influenced by recommendations from the IMF for some detailed scrutiny of economic data and some transparency in the workings of the monetary policy committee.

    Already there are predictions that the policy rate, which currently stands at 24 percent, could notch up significantly after the Bank of Ghana review.

    The IMF is also pushing for further increases in the policy rate to check inflation.

    However, should the central bow to pressure and increase the rate again, it could worsen current credit squeeze on the market.

    Some economists say it will not be in the interest of the economy for the policy rate to be increased from the current 24 percent.

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