BizTech: BoG to review Ghana’s monetary policy rate - This is what it means in layman's terms

Various governments have put in place measures to help their countries survive.

One of the ways in which Ghana is doing so is through its Monetary Policy Rate (MPR) aimed at mitigating the horrors of the pandemic on the country’s fiscal space.

The Bank of Ghana’s Monetary Policy Committee has started its 95th regular meeting to decide on the benchmark Monetary Policy Rate for the next two months.

But what does the MPR mean to the layman?

The MPR is the rate at which the Bank of Ghana lends money to commercial banks.

Dr Adu Owusu Sarkodie of the University of Ghana Economics Department on Biz Tech show said “every nation has a set of macroeconomic policies, set to manage the financial resources. They guide the management of the supply of money and their interest rates. Monetary policies are set by the government to achieve macroeconomic objectives”.

On this edition of the BizTech show, we spoke to economist Dr. Adu Owusu Sarkodie as he explained monetary policy rate in layman's terms.

Below is the full video: