Business News of Tuesday, 18 May 2021
•The Bank of Ghana's Monetary Policy Committee (MPC) has announced a new date to hold its scheduled 100th meeting
•The new date for the meeting will take place from May 26 to May 28, 2021 with a press briefing scheduled for May 31, 2021
• At the MPC's 99th meeting, it kept its policy rate unchanged at 14.5 percent
The central bank's Monetary Policy Committee (MPC) has rescheduled its 100th meeting which was expected to take place from May 19 to May 21, 2021.
The Bank of Ghana in a notice served on Tuesday May 18 announced its new date for the meeting for May 26 to May 28, 2021. The bank however added it will update the press on its decisions taken after its meeting on May 31, 2021.
The MPC's meeting will entail the initiation of proposals for the formulation of the policies of the central bank, provision of statistical data, advice and a review of economic developments for the country.
Meanwhile, at its second meeting and press briefing of this year, the Bank of Ghana's MPC kept its policy rate unchanged at 14.5 percent.
Explaining the rationale behind the policy rate decision, Governor of the Bank of Ghana, Dr Ernest Addison, explained the 2021 budget presented by government has set fiscal policy on an adjustment path albeit slower than originally anticipated.
“The adjustment for 2021 is expected to be driven, mainly by revenue-enhancing measures, and to a lesser extent, expenditure rationalization due to the need to continue the stimulus programmes. The Committee assessed achieving the enhanced revenue targets and the heavy reliance on the domestic market as the main risks to the budget,” the governor earlier said.
“After declining in January 2021, headline inflation rose in February slightly above the upper band of the medium-term target, driven mainly by non-food prices. The Bank’s forecast, however, remain broadly unchanged with headline inflation expected to return to the target band in the second quarter of 2021,” he submitted.
The policy rate is of key interest to businesses operating in the country as it influences the interest rate on loans and determines the rate at which the central bank lends to commercial banks.
Read the Bank of Ghana's notice below: