The Bank of Ghana (BoG) has lowered its monetary policy rate by one per cent.
In effect, the rate that commercial banks use as a reference for lending has been reduced from 30 to 29 per cent after six months.
The rate has remained at 30 per cent since July 2023 to keep inflation under control.
The business community and industry players had called for a rate drop to boost operational activities and expand credit to the private sector.
At its 116th monetary policy announcement today, the Bank of Ghana cited a significant decline in inflation, a stable currency rate, and relatively strong economic growth on both the domestic and global as reasons for the cut.
Governor, Dr. Ernest Addison added that although the ease in inflation indicates the efficiency of its inflation-targeting framework, it will continue to monitor developments and respond appropriately to tame to elevated risks to inflation.
“Global inflation had triggered a pause in monetary policy tightening across key economies. Global economic activity moderated somewhat in the year, with declining energy and food prices together with tight energy policy but exerted downward pressures on headline inflation.
“Although major central banks have paused on their major policy rate hikes due to declining inflation, global financing inflation conditions remain tight as the past effect of the restrictive policies continues to keep borrowing costs high. The global outlook remains uncertain, with geopolitical tensions and its potential spillovers to the commodities market acting as a major risk factor to most economies.”
“On the domestic economic, there are clear indications that the current macroeconomic framework being implemented with the IMF PCF programme is yielding positive results. The macroeconomic fundamentals have all trended in the right direction. Both headline and core inflation are declining and projected to desolate further. Inflation expectations seem well anchored. Fiscal policy implementation is broadly in line with the expectations.
“The current account balance is in surplus and will likely remain so in the near term. The foreign exchange build-up has been strong and should support the stable exchange rate outlook. The benchmark key interest rate indicator, the United One Day Treasury Bill Rate also declined over a year in response to macroeconomic conditions,” he stated.
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The Ghana Shippers’ Authority (GSA) was presented with a Certificate of Merit on International Customs Day in Accra. This was in recognition of the exceptional services provided and commitment to promoting and safeguarding the interests of shippers and stakeholders in the shipping and logistics industry.
The acknowledgement also signifies the critical roles played by the GSA, contributing to the Customs Division of the Ghana Revenue Authority (GRA) achieving its revenue target for the year ending 2023. The presentation took place on Friday, January 26, 2024, by the Commissioner of the Customs Division of the GRA, Alhaji Iddrisu Iddisah Seidu.
The event, themed “Customs Engaging Traditional and New Partners with Purpose,” brought together industry players to review their performance and ways to improve the operations of the Customs Division of the GRA.
Chairing the event, Mr. Kwesi Baffour Okyere Sarpong, the Chief Executive Officer (CEO) of the GSA, highlighted the importance of partnerships between key state agencies and the private sector for the development of the Shipping Sector. He reiterated his commitment to strengthening existing partnerships between the GSA and the Customs Division of the GRA to serve the interests of shippers.
“The collaborative approach signalled by Customs is essential in cultivating an environment that not only supports but enhances the efficiency, security, and evolving trend of domestic and international trade. For us at the GSA, any endeavours that facilitate, enable, or enhance the business of the private sector, particularly importers, exporters, and transiters whom we call shippers, is very heartwarming,” he noted.
In a speech read on behalf of the World Customs Organisation’s Secretary-General, Mr. Ian Saunders, the Commissioner of the Customs Division of the GRA, Alhaji Iddrisu Iddisah Seidu, stated that the WCO intends to establish new partnerships with financial and environmental-based institutions, as well as academia, with the aim of aligning all partnerships with the overarching focus on the value of customs.
The event featured presentations on relevant topics by the Head of Marketing and Public Affairs at the Tema Port, Mrs. Abena Serwaa Opoku-Fosu, as well as the Head of Policy and Programmes, Mr. Divine Agbeko, and Former Deputy Commissioner of Operations of the Customs Division of the GRA, Mr. Baffour Yaw Asare.
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