The Bank of Ghana has released its latest data on Annual Percentage Rates (APR) of interest charged on loans and credit advances and the Average Interest (DI) paid on deposits by banks. The data is based on figures available as at 30th November, 2016. According to the data, the industry average base rate as at … Read more
The Bank of Ghana has released its latest data on Annual Percentage Rates (APR) of interest charged on loans and credit advances and the Average Interest (DI) paid on deposits by banks. The data is based on figures available as at 30th November, 2016. According to the data, the industry average base rate as at … Read more
The central bank’s policy rate could fall below 20 percent in the coming year, the first time since 2014, a forecast by RMB Global Markets Research, a South Africa-based research firm has said. The forecast would come as good news to businesses that have consistently battled costly credit which has proved detrimental to businesses’ expansion … Read more
The US Federal Reserve has raised its benchmark interest rate by 0.25%, only the second increase in a decade. The central bank voted unanimously to raise the key rate to a range of 0.5% to 0.75%, citing a stronger economic growth and rising employment. But the central bank said it expected the economy to need … Read more
The Bank of England has voted unanimously to keep the UK’s main interest rate at a record low of 0.25%. It said that the next rate move could be in either direction. The last change was a rate cut in August, in the wake of the UK’s vote to leave the EU. The Bank said … Read more
In my previous column I observed here how the 2016 race reflects American conditions in the late 1970s — also stagnant — and how the political elites are echoing President Jimmy Carter’s feckless reaction in his notorious July 15, 1979 address to the nation in which he said, in part: The threat is nearly invisible … Read more
Total bills and bonds auctioned this year, from January to October, by the government, Bank of Ghana, and COCOBOD including already issued longer-term bonds that matured this year, have hit GH¢145billion, data from the Central Securities Depository has shown. The successful issue of over GH¢145 billion debt securities “may be partly attributed to the attractive … Read more
The government should not attempt to introduce legislation to cap interest rates because the consequences could be dire, Frank Adu, Managing Director of CAL Bank, has said, agreeing with other industry players that the market should be allowed a free hand. “You cannot manually determine interest rates. If you control interest rates by an Act … Read more
The Bank of Ghana (BoG) has doubled up on its open market operations (OMO) over the last 10 months, in an attempt to mop up extra liquidity and drive down inflationary pressures. From GH¢4.8 billion in October, last year, bills and notes issued by the central bank for treasury operation purposes rose to GH¢93.3 billion … Read more
The average interest paid on deposits in the banking sector has seen a continues decline in three consecutive months, even as banks bid to attract deposits with various promotions, at a time cheap funds have become scarce. In its latest assessment of the interest rate regime in the country, the central bank reports that the … Read more
The cedi could be in for its toughest test this time in the year, as seasonal demand for the US dollar by importers, and the uncertainties surrounding the impending elections have begun to unsettle it somewhat. At a year-to-date depreciation of 4.6 percent, the careworn currency has demonstrated rare resilience, but an analysis of the … Read more
The Bank of Ghana(BoG) has refuted claims that the issuance of dollar denominated bond in the country will drain dollar accounts of banks. Government recently raised a total of 94.62 million dollars in its first local dollar denominated bond at a rate of 6.0 percent. Reacting to the move, the Managing Director of CAL Bank, … Read more
The Bank of Ghana(BoG) has refuted claims that the issuance of dollar denominated bond in the country will drain dollar accounts of banks. Government recently raised a total of 94.62 million dollars in its first local dollar denominated bond at a rate of 6.0 percent. Reacting to the move, the Managing Director of CAL Bank, … Read more
The start of the week saw the Monetary Policy Committee (MPC) of the Bank of Ghana announcing a reduction in the policy rate by 50 basis points to 25.5 per cent. Previously, the rate had held at 26 per cent, as the preceding MPC meetings felt, after deliberations, that to strap the risk of inflation … Read more
Governor of the Bank of Ghana (BoG), Dr Abdul-Nashiru Issahaku has acknowledged the slow growth of the Ghanaian economy, attributing it to external factors and tight credit conditions. According to him “growth has remained subdued for the most part of 2016 largely due to tight credit conditions and the downturn in commodity prices.” The Governor … Read more
Some financial analysts are anticipating that the Bank of Ghana (BoG) will sustain the decision to reduce further, its policy rate to ease access to credit to businesses. According to them, commercial banks will respond to calls for lower interest rates if the primary reference which is the policy rate, drops. “It is in the … Read more
Banks borrowing from each other or the central bank, otherwise known as repurchase agreements or repos, has hit GH¢145.7 billion in November 2016, which is a 451 per cent increase from the GH¢26.4 billion registered in 2010. But some 73 per cent of the repos done this year happened among commercial banks, instead of with … Read more
Economist, Dr. Lord Mensah has ruled out an immediate reaction from commercial banks following the reduction of the policy rate. Though he has lauded the Bank of Ghana (BoG)’s decision to reduce the rate, he describes the figure as marginal. According to Dr. Lord Mensah, businesses must therefore be guarded in their expectations of a … Read more
Economist, Dr. Lord Mensah has ruled out an immediate reaction from commercial banks following the reduction of the policy rate. Though he has lauded the Bank of Ghana (BoG)’s decision to reduce the rate, he describes the figure as marginal. According to Dr. Lord Mensah, businesses must therefore be guarded in their expectations of a … Read more
The Monetary Policy Committee of the Bank of Ghana (BoG) on Monday reduced the policy rate to 25.5 percent from 26 percent. Even though commercial banks were praying for 100 basis points reduction, the 73rd regular MPC meetings reduced it by 50 basis points. Dr. Abdul Nashiru Isahaku, Governor of the Bank of Ghana, told … Read more