BoG slashes lending rate to 27%

On September 28, 2024, 9:04 PM

The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) has reduced its lending rate to commercial banks from 29% to 27%.

It dropped the rate by 200 basis points to 27 per cent.

At a news conference on September 27, the Governor of the Bank of Ghana, Dr. Ernest Addison, emphasized that a positive economic outlook drove the decision. He noted that headline inflation has decreased for five consecutive months since the beginning of the year, falling by 5.4 percentage points.

“Given these considerations, the Committee decided to lower the Monetary Policy Rate by 200 basis points to 27.0 per cent”, he said.

Dr. Addison also highlighted that core inflation had seen a significant decline of 6.9 percentage points over the same period.

This sharp decrease further supports the declining disinflation process as intended.

He underscored that these trends are encouraging indicators of economic stability, suggesting that the measures being implemented are effectively addressing inflationary pressures and paving the way for a more sustainable economic environment.

“The latest forecasts show that inflation will continue to ease towards the range target of 13-17 per cent for the year and steadily track back towards the medium-term target of 6-10 per cent by the end of 2025, barring unanticipated shocks. At the current juncture, the committee judged the risks to the inflation outlook as fairly balanced. 23,” he said.