Business

Resource Centre » Business » IEA projects policy rate to be increased to 19 per cent

IEA projects policy rate to be increased to 19 per cent


IEA projects policy rate to be increased to 19 per cent

May 19, 2022 at 8:50 AM

The Institute of Economic Affairs (IEA) is projecting a 200-basis points increase in the policy rate (PR) of the Bank of Ghana (BoG) to 19.0 from 17.0 per cent.

This, it believes, will help narrow the gap with the rising inflation and also ease to some extent the risk of foreign currency outflows.

However, the move will increase the cost of living and doing business because lending rates will go up further, while money supply will reduce.

Learn more


Advantage Points