ACCRA, The Monetary Policy Committee of Ghana’s central bank has cut its benchmark interest rate by a full two percentage points — from 25.5 to 23.5 per cent — citing the easing of underlying inflationary pressures and follows on a 50-basis-point reduction in January.
Bank of Ghana Governor Dr Nashiru Issahaku told a media conference here Monday that the underlying inflation pressures had eased considerably and inflation was projected to trend downwards toward the medium-term target of 8.0 per cent, plus or minus two percentage points.
Headline inflation declined for the fifth consecutive month in February 2017 to reach 13.2 per cent from 17.2 per cent in September, 2016 and 15.4 per cent in December, 2016.
“There are indications that growth is likely to remain significantly below potential which, alongside an improved inflation outlook, provides some scope for monetary policy easing,” Dr Issahaku said.
The upside risks to the inflation outlook continue to be the impact of tighter global financial conditions and volatility in commodity prices, which may adversely impact Ghana’s balance of payments, exchange rate and the inflation outlook, he said.
Source: NAM NEWS NETWORK