Monetary Policy Committee (MPC) of the Bank of Ghana (BOG) has reduced the policy rate by some significant margin. BOG dropped its key lending rate to commercial banks by 200 basis points to 18 percent.
According to the Governor of the Bank of Ghana, Dr Ernest Addison the move was influenced by positive economic outlook.
The committee at its last meeting reduced the rate by 100 basis points to 20 percent.
The cut in the policy rate is the biggest drop since November 2014.
The governor maintained that recent regulatory measures are aimed at stabilizing the banking sector and to increase investor confidence in the economy.
Some economists and analysts engaged by JoyBusiness had earlier predicted the rate was likely to be maintained or reduced marginally.
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