Business News of Wednesday, 29 January 2020Source: goldstreetbusiness.comPolicy rate cut unlikely this month – Reuters PollThe poll suggests rates will fall by 100 basis points to 15.0%A poll of international financial and investment analysts conducted by Reuters is suggesting that the Monetary Policy Committee of the Bank of Ghana will still keep the prime rate stable at 16 percent at the end of its ongoing meeting. Nevertheless, the Reuters poll agrees with the conventional view – including that of the Economist Intelligence Unit – that a cut in the MPR is expected during the year. The poll suggests that rates will fall by 100 basis points to 15.0 percent – in line with the EIU’s expectations – this year even as it expects the economy to expand by 6.2 percent this year. “A temporary truce in the U.S.-China trade war and likely continued policy accommodation by global central banks would likely enable monetary policy moves by Africa’s major central banks to be more effective this year,” said Rafiq Raji, chief economist at Macroafricaintel. “With reforms on the fiscal side in tandem, the continent would likely record better economic outcomes this year.”

Source: GhanaWeb January 29, 2020 09:45 UTC