The Monetary Policy Rate was increased by the Bank of Ghana from 19 percent to 22 percent by a factor of 300 basis points.
The policy rate last changed in May 2022.Due to Ghana’s current economic difficulties, the Monetary Policy Committee met earlier on Wednesday. This development comes after that meeting.
Before raising the policy rate, the Bank of Ghana stated in a statement that it had taken inflation forecast risks into account.
The central bank also increased the primary reserve requirement for banks from 12 to 15 percent.
This increase will be implemented in stages, beginning with a 13 percent rise on September 1, 2022, followed by a 14 percent increase on October 1 and a 15 percent increase on November 1.
The Bank of Ghana announced that it is collaborating with mining companies, international oil companies, and their bankers to buy all foreign exchange resulting from the voluntary repatriation of export proceeds from these industries in order to increase the supply of foreign exchange to the economy.
The central bank declared that this will improve its foreign exchange auctions.
The value of the Ghana Cedi has declined by 25.5 percent so far this year.