Business News of Wednesday, 1 January 2020Source: www.citibusinessnews.comEIU predicts reduction in policy rate this yearGhana’s inflation currently stands at 8.2 percentIndividuals and businesses seeking credit from commercial banks this year should be offered some respite as the Economist Intelligence Unit is predicting that the Bank of Ghana will lower its lending rate. The business intelligence advisory firm in its latest country report stated that the Bank of Ghana’s policy rate currently pegged at 16 percent could be lowered further as inflation, which has been a driver, declines further. The last time the Monetary Policy Committee of the Bank of Ghana reduced its policy rate, which is the rate at which central bank lends to commercial banks, was in January 2019. Ghana’s inflation currently stands at 8.2 percent but the EIU predicts that the rate will largely remain unchanged throughout the period. The Monetary Policy Committee in its last meeting unveiled a number of measures it hopes to undertake in to further reduce the high cost of lending.

Source: GhanaWeb January 01, 2020 12:56 UTC