A 150 basis point reduction in the policy rate to 14.0% was approved by six members of the Monetary Policy Committee.

Compiled By: Prince Henry Danquah, Bora Capital Advisors Ltd.

Four out of six members of the Monetary Policy Committee voted for 150 basis points cut in the policy rate to 14.0%.

This was captured in the Monetary Policy Committee (MPC) decision report submitted by the Bank of Ghana.

However, one of the members voted for a 75 basis points cut, while the other member wanted the rate to be kept unchanged at 15%

The majority of the members were worried about the impact of the developments in the Middle East and its impact on the economy, especially inflation. 

For instance, according to the submission made by one member of the MPC, there are some key downside risks to the forecast with respect to inflation due to the recent surge in international crude oil prices and their transmission to domestic ex-pump petroleum prices.

Source: newsthemegh.com