Dr. Eric Osei-Assibey, the Economists
Dr. Eric Osei-Assibey, the Economists has ruled out the possibility of a change in the policy rate to be announced by the Bank of Ghana (BoG).
He says, this is as a result of government missing its end of year inflation target of 11.2 %. Gov’t recorded an 11.8 percent inflation rate at the end of last years.
Currently, the policy rate is at 20 %, the rate is the rate at which the Central Bank lends to commercial banks.
Dr. Osei-Assibey said speaking to media on the matter, was of the view that the new inflation figure would highly influence the decision of the Bank of Ghana in determining the policy rate
He said, now the government has missed its inflation target, it will also have an implication on monetary policy, the Central Bank will be meeting soon to determine the monetary policy rate”.
Dr. Osei-Assibey stated that the development will inform the Bank of Ghana to assess the situation before any decrease is made.
He said, inflation target rate was not achieved and has diverged slightly from its course, it will suggest to the Central Bank that it cannot drastically reduce the monetary policy rate. He added that the aim of the central bank is to use monetary policy tools to control pricing.
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