Ghana’s central bank will reduce interest rate in 2019 for businesses to run smoothly

The government of Ghana has projected a reduction on interest rate next year.

The central bank of the country, the Bank of Ghana (BoG) made the revelation, predicting that the reduction is likely to take effect in March if the country’s inflation keeps falling like it is currently.

The rate of inflation for November 2018 was reported to have dropped from 9.5 per cent recorded in October 2018 to 9.3 per cent, the lowest since January 2013.

This, therefore, has influenced the consideration of the reduction of the interest rate in the country.

The Governor of the Bank, Dr Ernest Addison told reporters that the bank will have their next meeting in January and there, they will consider issues of reducing the interest rate.

Although the consideration will be made in January, the Governor said the reduction can take effect in March. This is because the bank will have to still monitor the inflation rate on the economy before implementing the policy. And this can be done in March where they will have their next meeting after January.

Adding that, instead of dealing with traders on phones, the bank will push local money market traders to used electronic trading platforms. This is a measure that the bank said could help slow the recent fall in the country’s currency and help stabilise it.

Ghana’s interest rate is currently 17 per cent.