The Bank of Ghana has reviewed its policy rate by 150 basis points to 14.5 percent over fears the coronavirus outbreak could slow down economic growth in 2020.
The bank reduced the rate, which is the benchmark for interbank lending, from 16 percent to 14 percent and the policy rate determines the rate at which commercial banks determine interest rates on loans.
The reduction in the rate is the first since November 2018 and is expected to combine with other factors to make the cost of credit cheaper.
The Bank of Ghana has expressed fears that the scourge from the Coronavirus disease (COVID-19) will collapse growth in the economy to 2.5 percent in 2020.
The Governor of the central bank, Dr. Ernest Addison, said in a statement that the 2.5 percent growth rate would be a “worst-case scenario” impact from the challenges of the disease on the local economy.
Source: Mybrytfmonline/Kofi Atakora
