The Bank of Ghana has again maintained the monetary policy rate at 16 percent while it takes decisive policy actions, if necessary, to ensure inflation remains within the targeted band.
The Governor, Dr. Ernest Addison announced this at the Monetary Policy Committee press brief in Accra.
According to the Governor, the committee viewed the risk to inflation and growth outlook as broad balance and therefore decided to keep the policy rate unchanged.
Dr. Addison claimed that the latest data from the Ghana Statistical Service (GSS) indicates a strong and firmer growth in 2019, though at a relatively slower pace than in 2018 with a Gross Domestic Product (GDP) growth outturn for the 1st three quarters of 2019 averaged 6 percent, adding, this almost unchanged from the 6.1 percent recorded in the same period in 2018.
“Similarly, non-oil GDP growth averaged 5.0 percent against 5.9 percent over the same comparative periods. The overall growth for 2019 is projected to be close to the target of 7.0 percent”, the Governor indicated.
He said the Cedi depreciated against the US dollar by 12.9 percent in 2019 as compared to 8.4 percent in 2018.
“Against the British pound and Euro, the Ghana cedi cumulatively deprecated by 15.7 percent and 11.2 percent respectively, as compared with 3.3 and 3.9 percent over the same period in 2018″, he added.
But he further disclosed that the Cedi had recovered its value this year, in January 29, appreciating by 0.3 percent as compared to a depreciation of 2.5 percent in the same period in 2019.
Dr. Addison said interest rates on the money market has increased slightly across the various maturities of the yield curve, stating that the 91-day Treasury bill rate inched up to 14.7 percent last year December as compared with the 14.6 percent in 2018.
“Though the interest rates have moved up sharply, the bonds, like the secondary and yields on the 7 and 15-year have marginally decline in last year,” he noted.
He also added that the banking sector has improved, signifying a positive dividends due to the clean-up and recapitalization exercise undertaken recently.
“Enforcement of the new Corporate Governance Directives has been issued by the central bank as part of the recent reforms which had led to several board chairs of banks and CEOs ending their turner, while Board members are replaced,” he stressed.
Source: Eric Nii Sackey || ghananewsonlineonline.com.gh