BoG maintains policy rate at 30%
Dr Ernest Addison — BoG Governor

LIVE UPDATES: Key highlights from BoG's MPC press conference today

The Monetary Policy Committee of the Bank of Ghana (BoG) has maintained the policy rate at 30 per cent.

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Key BoG MPC 114 press conference highlights

  • BoG projects growth at three per cent, double the International Monetary Fund (IMF) projection of 1.5 per cent.
  • BoG purchase USD1.5 billion under domestic gold purchase under the Gold for Oil (G4O) programme.
  • We do not need positive equity to be effective - BoG Governor. 
  • Banks are holding about 12 per cent liquidity with BoG.
  • We do not have to print money to support the banks.
  • We are focused on delivering inflation target - BoG Governor.
  • External debt in cedi terms have increase but there is improvement in external debt standstill.
  • Not paying debts is a major relief to the economy.
  • IMF members are in town for meetings.
  • IMF program is good for the economy.
  • Stable economy, inflation is closing down, stable currency will help rebuild confidence.
  • We are confidence of the program results.
  • We will come out of the IMF strong.
  • We expect the second tranche before the end of the year.
  • On External Debt Servicing : Discussions are still on-going.
  • We do not expect the discussions to be successful.
  • Our Debt service will be significantly low.
  • Resumption of non-performing loan (NPLs) - we are not surprised to see the banks recoding NPLs; because of the economic challenges, however we expect NPLs to stabilise
  • On Treasury Bills- Inflation is going down. As we continue to make progress, interest rates will fall.
  • Government this week is holding discussions with IMF Team, there will be technical sessions.
  • By the end of mission, we will have consensus view of the growth targets.
  • We have enough buffers to manage the exchange rates.
  • FINTECHS: we are looking at reigning them in items of charges.
  • Ghana Stability Fund- by end of the month and early month all structures will be place.
  • BoG laws are clear on reporting lines with regards to reporting not Parliament
  • Ministry of Finance reports to Parliament directly.

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