22% BoG policy rate: Ghanaians must prepare for tougher times — Financial analyst

The hike in the key rate follows the emergency meeting of the Monetary Policy Committee (MPC) held by the Central Bank today, August 17, 2022.

According to the BoG, the latest rate was obtained due to the current economic situation and risks to the inflation outlook. Ghana is n.

With the rise in the key rate, interest rates on bank loans to households and companies should increase, raising the cost of production for companies.

The increase in the key rate by the Central Bank would be mainly due to the rise in inflation in the country and the increased pressures in the foreign exchange market regarding the depreciation of the cedi.

“Under these circumstances, and given the risks to the inflation outlook, the Committee has decided to raise the policy rate by 300 basis points to 22%,” the BoG said in a statement.

Courage Martey speaking on the policy rate hike said: “With this, we can expect a jump in the lending rate.”

Speaking on TV3, he said the hike in the policy rate “means the cost of funds for banks and individuals is higher now. Be prepared for a higher rate.”