Bank of Ghana increases policy rate to 14.5%

This is the first time since May 2021 that the Bank of Ghana (BoG) has increased the policy rate, amid the coronavirus pandemic

The monetary policy committee (MPC) of the Bank of Ghana (BoG) has increased the policy rate by 100 basis points from 13.5% to 14.5 5%.

The policy rate signals the rate at which the central bank lends to commercial banks in the country.

In May 2021, the BoG lowered the policy rate by 100 basis points from 14.5% to 13.5%. It was the first time in the year that the central bank had lowered the policy rate.

The central bank had since then maintained the policy rate at 13.5% on two consecutive occasions.

Public debt

At the same time, Ghana’s public debt has risen to GHC341 billion, GHC1 billion up from the GHC340 billion recorded in August 2021. The GHC341 billion amounts to 77.8% of gross domestic product.

These are the figures according to the latest data released by the Bank of Ghana. In the report, domestic debt stands at $178.1 billion while external debt amounts to $163.7 billion.

The economist Kwame Amoah Darkwah, who has been combing the data, says it is time to take a look at reducing Budget deficit targets and rationalising expenditure schedules.

See below for the full statement:

MPC-Press-Release-November-2021.pdf (

Fred Dzakpata

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