BoG governor promises reduced interest rates in 2010


The governor of the Bank of Ghana has promised businesses the bank will focus on reducing interest rates in response to inflationary trends this year.

This will enable businesses get easier access to credit for productive purposes.

Kwesi Amissah-Arthur is therefore encouraging the private sector to position itself to take advantage of the banks’ interventions.

He was speaking at the Association of Ghana Industries’ induction ceremony in Accra.

“Our objective for the coming year is to foster the growth of the national economy by encouraging further decline in interest rates as inflation declines and inflation expectations decline,” he said.

“This will set the stage for the private sector to access credit at relatively cheaper costs to pursue productive ventures while the central bank works to preserve the microeconomic and financial stability. And businesses must begin to map out strategies to improve efficiency and reduce operating cost.”

Meanwhile the Ghana Statistical Service (GSS) will later today release the inflation rate for the last month of 2009.

Even though most analysts have shed all optimism that government would meet its end-of-year target of 14.5 percent, many would be keen on knowing whether it will trend downwards as expected, especially, by how much and how the market would react to it.

Ultimately, there would be keen interest on how the Bank of Ghana respond to it through its prime rate. November recorded 16.9 percent.

Source: Joy Business/