Thursday, 6 December 2007

Ghana's Prime Rate Increases

05/12/2007

Monetary Policy Committee in Bank of Ghana raises its key policy rate, the Prime Rate, to 13.5 percent to place the economy firmly on the path of continued disinflation, and bring inflation into the middle single digit range within a time horizon of 18 to 24 months, fiscal consolidation is necessary in the forthcoming 2008 budget along with some monetary tightening to anchor inflation expectations to underpin financial stability and growth. In the circumstances, and given the balance of risks, the Monetary Policy Committee decided to increase the Bank of Ghana prime rate to 13.5 per cent.

Source: BOG

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