Ghana’s Central Bank Governor, Dr Abdul Nashiru Issahaku was appointed in 2016. Photo Credit: Africafeeds.com/Fred Dzakpata
The Monetary Policy Committee of the Central Bank of Ghana has decided to maintain its policy rate at 25.5 percent.
The Policy rate is indicative of the rate at which the Central Bank lends to commercial Banks.
Governor of Ghana’s Central Bank Dr Abdul Nashiru Issahaku is attributing the Bank’s decision to maintain the rate due to a risk balanced to inflation and growth outlook in the economy.
According to him headline inflation continued to ease, closing the year at 15.4 percent from 15.8 percent in October 2016 supported by tight monetary policy and relative stability of the exchange rate.
“The Economic activity remained modest throughout the year, against the backdrop of policy tightness, oil and gas production challenges at the Jubilee field, and lingering consequences of the power supply constraints” he said.
The governor said “The updated Composite Index of Economic Activities,(CIEA) to November 2016 points to some moderation in the pace of economic activity reflecting declines in industrial consumption of electricity, cement sales, tourist arrivals and domestic VAT collection”.
The West African country also recorded a surplus in its provisional balance of payment for the first time since 2011.
Source: Africafeeds.com/Fred Dzakpata
