Business News of Sunday, 2 February 2020Source: thebftonline.comTighten policy rate to stabilise cedi – IMFFile photoDespite falling inflation, the International Monetary Fund (IMF) says it would be a prudent decision by the Bank of Ghana to adopt a tight stance on monetary policy in order to help stabilise the exchange rate. This context suggests that the current policy rate is appropriate. It, however, acknowledged that inflation will generally slow in 2020, making a good case for a policy rate cut at some point during the year. Meanwhile, the Bank of Ghana has constantly maintained that it will only ease its policy rate stance if it considers economic conditions favourable to do so. In its last MPC meeting, it maintained the policy rate at 16 per cent with the reason that inflation still needs further monitoring.

Source: GhanaWeb February 02, 2020 06:33 UTC