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M. Ken Ofori-Atta, the finance minister, said on Thursday that the Bank of Ghana's Monetary Policy Committee has maintained a relatively restrictive policy in 2017. He said the goal of the MPC was geared towards The anchoring of inflationary expectations and the guarantee of the stability of the national currency.
But the policy rate was gradually lowered by 25.5% from 25.5%. 23.5% in March 2017, 22.5% in May, 21.0% in July and 20% in November, while inflationary pressures were easing, while growth, especially in the non-oil sector remained modest. 19659003] Mr. Ofori-Atta explained them in his presentation of updates on macroeconomic developments in 2017, when he presented to Parliament the mid-year tax policy review of the IMF. 2018 Budget and Economic Policy Statement
The Minister of Finance explained that growth in the broad money supply, including foreign currency deposits (M2 +), declined year-on-year.
He declared: "At the end of December 2017, M2 + registered an annual growth of 16.7%, compared to 22.0% for the same period of 2016", adding that this was mainly due to a moderate growth of 9, 0% of net domestic assets (NDA), compared with 19.5% in December 2016. [19659003LerythemodeofNDAcreationoftheNDAhasalsomodeled384%ofnationalassets(NFA)inDecember2017(298%inDecember2016)hesaid
public and private institutions were still moderate in December 2017 due to higher non-performing loans and restrictive credit conditions.
However, Banks' total credit outstanding slowed from 17.6% to 12.8% in the same period in 2016.
Mr. Ofori-Atta reported that credit growth to the private sector was 12.8% year-on-year, compared to 17.6% in 2016, explaining that in real terms, credit to the private sector increased by 0.9% in December in 2017, which is an improvement over He stated that the total outstanding amount of credit amounted to 33 819.3 million GH ¢ at the end of December 2017, of which the private sector accounted for 89 , 8%, and that money market interest rates in 2017, while the weighted average interbank rate fell to 19.3% at the end of December 2017 against 25.3% in December 2016.
Securities of the Short-term Treasury and medium-term money market instruments declined significantly at the end of He said that in December 2017, the rates of 91 days, 182 days, 1 year and 2 years also decreased respectively to 13.3, 13.8, 15.0 and 17.5 cents in December 2017, from 16.81, 18.50, 2 Similarly, rates on 3-year and 5-year also decreased to 18.3% and 17.6%, respectively, from 24.0% and 24.8% in December 2016.
However, the Minister of Finance indicated that bond rates at age 7 went from 18.0% to 19.8%, while the 10 year bond rate remained unchanged at 19.0% over the same period.
The average rate of three-month money market term deposits also remained unchanged at 13.0% on an annual basis, while the savings rate increased by 150 basis points to 7, 6% in December 2017.
He said the government in 2017, also introduced a number of initiatives, with the aim of deepening the capital market, increase liquidity and trade. activities as well as to encourage
He mentioned the issuance of a 15-year fixed-rate bond, as part of efforts to lengthen the maturity profile of the domestic debt market , saying that this was currently used as a benchmark for the pricing of corporate issues.
In addition, the Ghana Stock Exchange (GSE) has completed an interface to the E-Bond Trading platform used to trade fixed income securities with the Central Securities Depository (CSD) deposit system to facilitate the E-Bond transaction processing. He stated that fixed income securities listed on the Ghana Fixed Income Market (GFIM) had a value of GH ¢ 28.71 billion, compared to GH ¢ 15.60 billion in 2016, according to the value of 2017 On the trading platform E-Bond, 6% l were on 28.71 billion GH ¢ against 10% in 2016.
M. Ofori-Atta noted that based on positive macroeconomic indicators in 2017, the GSE was rated among the best for the composite index of 52.73%, compared with -15.33% at the end of 2016.
He also commented on the funds managed by the Collective Investment Scheme (CIS), declaring He said that the government amended the 2017 Income Tax Act (amendment 941) in order to Exempt gains on 2-year investments, adding that the Securities and Exchange Commission (SEC), in collaboration with the Ministry of Finance, has developed relevant guidelines to strengthen the SEC's ability to effectively oversee market activities. capital.
GNA
By Christabel Addo, GNA
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