Some analysts are predicting a further increase in the Monetary Policy Rate as the Bank of Ghana commences its economic review meeting later today.
The Monetary Policy Committee’s meeting is due to end on Friday with a decision on the Policy Rate which directly influences interest paid on bank loans.
At its last meeting in February, the committee increased the rate by a 100 basis points to 13.5 percent. But some analysts believe this time around, the prevailing economic developments only point to a further increase by 50 basis points or maintained at worst case scenario.
Deputy Director of the Institute of Statistical, Social and Economic Research, Prof. Felix Asante explains to JOY BUSINESS, this should bolster some economic confidence.
“I would therefore be shocked if the rate is reduced because the macroeconomic variables are not responding to each other. For Instance, whilst the cedi continues to depreciate, inflation is not responding at that level. So with traders complaining bitterly about the depreciation, the Bank of Ghana would have to build their confidence back” he said.
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