The Monetary Policy Committee (MPC) of the Bank of Ghana is set to announce a new policy rate on January 30, 2023 which will influence the interest rate on loans.
The policy rate determines the benchmark at which the central bank lends to commercial banks.
From January 24 to 27, 2023, the Committee held its first meeting of the year to review economic developments in the country.
At the meeting, the MPC deliberated on the initiation of proposals for the formulation of the central banks’ policies, provision of statistical data, and economic advice.
Chairman of the Committee and BoG Governor, Dr. Ernest Addison will subsequently announce the decision and interventions taken particularly on the monetary policy rate which will impact the cost of credit for the next three months of the year.
At its last meeting of 2022, the BoG hiked the monetary policy rate from 24.5 percent to 27 percent to stem the inflation which has been soaring throughout the year.
The development has been coupled with rising cost of living, collapse of businesses and Ghana’s decision to turn to the International Monetary Fund (IMF) for a financial bailout.
Although Ghana has secured a Staff-Level Agreement with the fund for an amount of $3 billion under an Extended Credit Facility, government has announced plans to undertake a Domestic Debt Exchange Programme.
Under the programme, government is inviting domestic bondholders to voluntarily swap their bonds for fresh ones. It is targeting approximately GH¢137.3 billion of principal amount, outstanding of certain domestic notes and bonds issued by the government.
