BoG Maintains Policy Rate

The Bank of Ghana (BoG) has maintained the Monetary Policy Rate (MPR) at 29%.

The decision, the Bank said, is premised on the anticipated tighter policy rates by central banks due to global financing conditions; stable banking sector, exchange rate, fiscal policy implementation and disinflation.

“Given these considerations, the Committee decided to maintain the Monetary Policy Rate at 29.0 per cent.”

In addition, the Central Bank announced some policy measures on the Cash Reserve Ratio (CRR) for banks effective April 2024.

By this, banks with loan to deposit ratio above 55 per cent will have to meet a CRR of 15 per cent while banks with loan to deposit ratio between 40 per cent to 55 per cent will have to meet a CRR of 20 per cent. Additionally, banks with loan to deposit ratios below 40 per cent will be required to hold a CRR of 25 per cent.

The Monetary Policy Committee (MPC) in January reduced the rate to 29% in response to the current global and national economic trends.