Bank of Ghana keeps policy rate at 12.5%

The Bank of Ghana has maintained its policy rate at 12.5%.

At a press conference of the central bank’s Monetary Policy Committee (MPC), Wednesday December 21, 2011, the governor of the Bank, Mr. Kwesi Amissah-Arthur said the current level of crude oil prices on the international markets may entail additional costs for crude oil importation with implications for domestic pricing of petroleum products going forward.

And according to him, although inflation has remained relatively stable since the beginning of the year, risks to the outlook for 2012 are slightly elevated.

“While upside risks remain,” he said, “the slowdown in the global economy, low foreign inflation, weak domestic business and consumer confidence as well as tight credit conditions for SMEs are expected to exert a moderating effect in the outlook.”

He indicated that in the assessment of the MPC, the risks to the outlook for inflation and growth are fairly balanced, and therefore, the Committee has therefore decided to maintain the policy rate at 12.5 per cent.

By Emmanuel K. Dogbevi