Bank of Ghana policy rate now 13.5%
As widely expected by economists, financial analysts and industry leaders the Bank of Ghana today Friday July 16, 2010 cut its policy rate to 13.5% from 15% following the further drop of the country’s inflation rate. The inflation rate for June is 9.52% a drop from the May figure of 10.68%
Sampson Akligoh, Senior Analyst at Databank Ghana, told ghanabusinessnews.com yesterday that the central bank was going to cut its policy rate adding that “transactional rates are also expected to drop to about 100 basis points.”
He said that will boost lending for business expansion and create more employment opportunities.
The governor of the Bank of Ghana, Kwesi Amissah-Arthur announced the rate cut at a press conference in Accra this morning.
By Emmanuel K. Dogbevi
We thank God and The Monetary Policy Committee of the Central Bank for reducing the policy rate to 13.5%. We expect the banks to also reduce their interest rates in response to the drastic reduction in the policy rate.
Now businesses can borrow and pay a little interest on their loans. They can also expand by going for long term loans and hence creating more employment.
But the question one would like to ask is that, “will the banks respond in like manner?”
Only God knows the game the banks in Ghana are playing with potential investors. Research revealed that interest rates in Ghana is the highest in sub-Saharan Africa.
God bless Ghana and I pray that the policy rate should fall further and Treasury bill rates should also fall the more. This will force the banks to reduce their lending rate for a real economic growth.
Government should try to avoid borrowing from the commercial banks and use the revenue judiciously to the benefit of the nation. We have hope in the Government if She continues in this manner.
God bless NDC, God bless Atta Mills(President) and God bless Ghana.