The Acting Governor of the Bank of Ghana, Dr. Kofi Wampah and other members of the Monitory Policy Committee will begin a series of meetings from Monday to examine the health of the economy.
The committee, under immediate past Governor Kwesi Amissah-Arthur, increased the policy rate to 15 percent, the second successive time this year.
The policy rate is usually indicative of the rate commercial banks can borrow from the Central Bank.
The Monetary policy among other things attempts to control interest rates to influence outcomes like economic growth, inflation, exchange rates among others.
The committee is expected to announce its decision on Wednesday on the whether to maintain the policy rate at 15 percent or increase it.
But sharing some perspectives with Citi Business News a Financial Analyst, Sydney Casely Hayford mentioned that “this will be impacted severely by what President Mahama said in his policy speech. He made several commitments for payment to be made, for changes to be made, for a lot of investigations and so the MPC must factor all of that into its thinking because of all that is going to have an impact on the government purse.”
According to him, “when they start doing that, they have to be careful about inflation impact, the run of to Christmas and very, very concerned about their cash balancing especially with all the money they are going to spend before the end of the year. If all this is factored in, they will be able to come out with a detailed analysis of whether or not the MPC should increase or decrease the rates.”
Mr. Hayford however opined that the rates will be maintained “in order not to rock the boat to keep it steady because they can’t afford any interruption towards the end of the year.”
He described Dr. Wampah as having a lot of experience with the Central Bank as he has been in the research department “for a very long time and apart from that, he has also been a Deputy Governor and would have been involved in MPC meetings all the time that he was there together with his predecessor so it is very likely that he will not be new to the game.”