The BoG’s Monetary Policy Committee (MPC) has kept its key lending rates to commercial banks unchanged at 17%, for the second time this year.
Addressing the press in Accra Monday, Governor and Chair of the Committee, Dr. Ernest Addison, explained that they had to do so due to threats of economic growth and inflation.
He said the most recent forecast showed a slow-down in the rate of disinflation on the back of possible second-round effects of recent increases in petroleum prices, exchange rate depreciation and tax increases, pick up in global inflation and effects of the tight global financing conditions.
“Given these considerations and weighing the balance of risks, the committee decided to keep the policy rate unchanged, but will continue to monitor closely developments in the coming months and take the appropriate actions to address any potential threats to the inflation outlook,” Dr Addison said.
Total public debt rose to GH¢159.4 billion as at end of July, representing 65.9 per cent of Gross Domestic Product.
Of the total debt stock, domestic debt was GH¢73.8 billion accounting for 46.3 per cent and external debt was GH¢85.5 billion with a share of 54.7 per cent.
Gross International Reserves declined from $7.6 billion, equivalent to 4.3 months of import cover at the end of December 2017 to $6.7 billion as at September 20, 2018, equivalent to 3.6 months of import cover.
On the performance of the cedi, Dr Addison said the strengthening of the dollar on the international markets had exerted pressure on currencies in emerging and developing economies, including Ghana.
He said in the year to September 20, the cedi cumulatively depreciated by 7.3 per cent, performing better than peers such as Brazil, South Africa, India and Turkey.
GNA