Bussiness
Cost of borrowing to surge as IEA proposes Policy Rate of 20% or 20.5%
Cost of borrowing is expected to go up further, as the Institute of Economic Affairs (IEA) is urging the Bank of Ghana to increase the Policy Rate (PR) by 1.0% or 1.50% to 20% or 20.5%.
Its argument is that the upward adjustment will narrow the inflation-Policy Rate gap, although the real Policy Rate will still remain negative.
In a statement signed by its Director of Research, Dr. John Kwakye, it said furthermore, the adjustment will signal the MPC’s unwavering commitment to fighting the inflation and bring it under control.
“The adjustment will also send the right signal to, and help calm, the markets”, it added.
Furthermore, the policy think tank explained that the next meeting of the MPC in September 2022, when the Committee would have had the benefit of two more inflation readings in July and August, would give it a clearer sense of the trend for it to reposition the PR accordingly.
The Monetary Policy Committee (MPC) of Bank of Ghana will hold its 107th meeting to decide on the Policy Rate (PR) on July 20-22, 2022. Once again, the Committee faces a challenging decision as inflation shot up further to 29.8% in June, the highest in 19 years.
In May 2022, the MPC adjusted its policy rate for the second consecutive time to 19%
“To deal effectively with the current inflation—and to limit the harm that exclusive use of the PR could cause—we have called for the Bank of Ghana and Government to work together to target directly the key inflation drivers, viz. food, fuel, transport and the exchange rate. We have provided detailed suggestions to address these factors in a July 12 Roundtable paper titled: Rethinking Inflation Management in the Wake of Covi-19 and Russia-Ukraine War”, it proposed.
“In major countries such as the US and UK, the governments have made inflation control a top policy priority and are taking measures to complement their central banks’ actions. The same approach is needed in Ghana. Even the IMF that is known not to be a fan of subsidies, has called on member governments to provide food subsidies to their citizens to cushion the cost of living crisis. This call should tell us that new interventions are required in dealing with what is clearly an unconventional-type of inflation that is currently sweeping the globe”, it added.
The Monetary Policy Committee of the Bank of Ghana will begin its quarterly meeting tomorrow, with the primary focus of the committee is to craft a policy to help stem the continuous rise in inflation.
Already, interest rates have remained relatively stable on the money market for the third week running.
Source: Joy Business
Ghanaian dancehall artiste Charles Nii Armah Mensah, known as Shatta Wale, has won two awards at the 43rd International Reggae and World Music Awards (IRAWMA) held in Florida over the weekend.
He picked up the Best African Dancehall Entertainer award as well as Concert of the Year for ShattaFest.
In a statement, Shatta Wale’s management expressed appreciation to the organisers and supporters of the awards.
“Management would like to sincerely appreciate the organisers of the IRAWMA awards for the recognition and continuous support for African music on the global stage.
“We also extend our deepest gratitude to fans across the world, especially the Shatta Movement fraternity, for their unwavering support, votes, and dedication throughout the years,” the statement said.
The statement added that the latest wins reaffirm the artiste’s position as one of Africa’s leading musical exports and a prominent figure in global dancehall culture.
The awards bring Shatta Wale’s total haul at the IRAWMA to 11, highlighting his continued presence on the international reggae and dancehall scene.
At last year’s edition, he won three awards: Best African Dancehall Entertainer, Best Music Video for “Killa Ji Mi”, and Best Crossover Song for “Commando” featuring Bounty Killer. -GNA
Bussiness
Global Market Volatility: Gov’t absorb GH¢2.00 per litre on diesel and GH¢0.36 per litre on petrol
Effective Thursday, April 16, 2026, which is the next pricing window, the Government will absorb GH¢2.00 per litre on diesel and GH¢ 0.36 per litre on petrol.
This intervention is intended to cushion customers and ease the cost burden on households, transport operators, and businesses.
The measure, approved by Cabinet, is in response to rising prices of petroleum products on the international market, which have significantly impacted ex-pump prices in Ghana.
This temporary intervention will remain in force for a period of one (1) month.
During this period government will continue to closely monitor developments in the global oil market and assess the need for further policy adjustments.
A statement signed by Minister of Government Communications, Felix Ofosu Kwakye noted that they remain commited to maintaining price stability, protecting livelihoods, and supporting Ghana’s economic recovery in the face of external shocks.
Entertainment1 week agoBig Ghun and Doreen Avio record massive turnout as Scarlett Unveiled auditions draw over 300 actors
- News5 days ago
University of Ghana launches UGA Network App to reconnect global alumni community
- News5 days ago
UG professor calls for responsible behavior from Ghanaians during the rainy season to prevent malaria
