daily menu » rate the banner | guess the city | one on oneforums map | privacy policy (aug.2, 2013) | DMCA policy | flipboard magazine

Go Back   SkyscraperCity > Continental Forums > Africa > West Africa > Ghana > Economy & Infrastructure



Reply

 
Thread Tools
Old February 18th, 2012, 02:56 PM   #1
obeeme
Registered User
 
Join Date: Dec 2009
Posts: 394
Likes (Received): 12

Bank of Ghana increases Policy Rate from 12.5% to 13.5%

The Bank of Ghana has increased the policy rate from 12.5 percent to 13.5 percent. This represents an increase of 100 basis points by the Monetary Policy Committee which has been meeting to review the economy since Monday.

This is the first time the Bank of Ghana has increase its policy rate since the middle of last year. Governor , Kwesi Amissah-Arthur told journalists at a news conference, the increase was as a result of some unforeseen factors likely to impact government’s projections and threats to inflation.

“Specifically, the pace of executing the budget in terms of arrears clearance, including those relating to the migration to the SSSS, and the recently announced increase in the minimum wage may impose additional demand pressures” he noted.

“The rapid growth in imports in 2011 and the unusual surge in demand for foreign exchange during the last quarter of the year created a misalignment in Bank of Ghana’s foreign exchange cash flow. Initially, this led to a marginal depreciation in the interbank rate as banks searched for resources to meet their customers’ requirements.Further pressure was placed on the exchange rate when foreign investors sought early redemption of their investments on the domestic bond market.The situation was further aggravated in January 2012 by speculative activities of dealers and traders” he explained.

“The pass-through to inflation expectations of developments in the foreign exchange market is obvious. The Bank therefore intervened to calm the market and restore stability. Going forward, the situation will be monitored closely and the Bank is ready to take appropriate measures to stem potential threats to achieving the inflation target” Mr. Ammissah-Arthur continued.

“To contain future inflation pressures and realign interest rates in favour of domestic assets, it is necessary that monetary policy continues to be fine tuned to ensure that inflation expectations remain anchored to keep inflation within the target band” the Governor concluded.
obeeme no está en línea   Reply With Quote

Sponsored Links
 


Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



All times are GMT +2. The time now is 10:46 PM.


Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2014, vBulletin Solutions, Inc.
Feedback Buttons provided by Advanced Post Thanks / Like v3.2.5 (Pro) - vBulletin Mods & Addons Copyright © 2014 DragonByte Technologies Ltd.

vBulletin Optimisation provided by vB Optimise (Pro) - vBulletin Mods & Addons Copyright © 2014 DragonByte Technologies Ltd.

SkyscraperCity ☆ In Urbanity We trust ☆ about us | privacy policy | DMCA policy

Hosted by Blacksun, dedicated to this site too!
Forum server management by DaiTengu