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Economic news for Monday, March 15, 2021
Source: www.ghanaweb.com
03/15/2021
Bank of Ghana Headquarters
The Bank of Ghana, the Monetary Policy Committee (MPC) of the BoG will begin its second meeting of the year from Wednesday March 17 to Friday March 19, 2021.
The meeting will include the launch of proposals for the formulation of central bank policies, the provision of statistical data, advice and a review of the country’s economic development.
According to a circular published on Monday, March 15, the central bank’s MPC is expected to inform the press of its decisions taken on Monday, March 22, 2021.
At the last MPC meeting in January 2021, the central bank kept its monetary policy rate unchanged at 14.5%.
BoG Governor Dr Ernest Addison explained that the decision was based on the rebound in growth indicators and headline inflation returning to target in the second quarter of 2021.
“In the national economy, growth has accelerated since the sharp contraction in the second quarter of 2020. All high-frequency indicators of economic activity have rebounded, consumer and business confidence levels have returned to their pre-lockdown level, and there are indications of steady growth in credit to the private sector, ”the governor said.
“However, the Central Bank expects headline inflation to return to target in the second quarter of 2021. Short-term inflation risks are broadly contained, but short- and medium-term risks from fiscal expansion and rising crude oil prices are emerging. Under these conditions, and taking into account the balance between the risks of inflation and growth, the Committee decided to maintain the key rate at 14.5% ”, he added.
Dr Addison warned, however, that a threat of a second wave of the coronavirus pandemic has increased uncertainty and could hamper the process of economic recovery in the near term.
The policy rate is of major interest to companies operating in the country as it influences the interest rate on loans and determines the rate at which the central bank lends to commercial banks.
See the circular below:
# MarchMPC2021 pic.twitter.com/9omWbAqwAP
– Bank of Ghana (@thebankofghana) March 15, 2021
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