Policy rate maintained at 26 percent again

The Monetary Policy Committee of the Bank of Ghana has once again maintained the policy rate at 26 percent. This is the fourth consecutive time the Committee is maintaining the rate at 26 percent since January this year.

Addressing the media at the concluding part of the 72nd meeting of the MPC, Governor of the Central Bank, Dr. Abdul Nashir Issahaku attributed the decision to the stability in inflation for the period.

Though the country’s inflation has increased to 16.9 percent in August 2016, from the 16.7 percent recorded the month before, Dr. Issahaku believes it formed part of the basis to maintain the rate at 26 percent.

In addition, the central bank has been unable to meet its inflation target of 8 percent plus or minus 2 percent. At the last meeting in July, the Governor announced that the central bank has shifted the forecast for single digit inflation to the third quarter of 2017.

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