The Monitory Policy Committee of the Bank of Ghana has reduced the Policy Rate from 13.5 percent to 13 percent after previously maintaining it for three consecutive times.

The Governor of the Bank of Ghana (BoG) Paa Kwesi Amissah-Arthur announced this on Friday May 13, after 5 days of deliberations by the Monitory Policy Committee of BoG.

According to the governor, the balance of risks to prices and output growth contributed to the reduction. The improved economic environment also contributed to the 0.5 percentage point reduction.

The move is contrary to widely held views by economists that the rate should be maintained at 13 percent.

The Policy Rate gives an indication of the direction of the general interest rates charged on loans by banks.