Businesses expect a further reduction in the Policy Rate reduction

Ghanaian businesses had been looking forward for a further reduction in the BoGs policy rate in this season of the pandemic and its impart in their activities.

on the contrary, the policy rate was maintained at 14.5%

Policy rate is however the rate which the rate at which the central bank lends to commercial banks, and also used by banks to calculate their base rates.

The Policy rate was unchanged at 16% for at least five consecutive times prior to its reduction to 14.5% due to the COVID-19 pandemic.

The Central Bank last Friday after its Monetary Policy Committee (MPC) meeting kept the policy rate unchanged at 14.5%

According to the central bank, the rate was maintained to control inflation especially in these times.

This is in other to reduce the impact of the COVID-19 pandemic on businesses.

Reduction expectations

Benjamin Yeboah, The Financial Welfare Officer of the Ghana Union of Traders Association (GUTA), added that a lot more could be done to cushion businesses further.

The Chief Executive Officer of the Private Enterprise Federation (PEF), Nana Osei Bonsu, also believes a further reduction could have been much appreciated as it would have been a turning point for the business community.