The Governor of the Bank of Ghana (BoG), Dr. Johnson P. Asiama, has announced plans to engage the Ghana Association of Banks in the coming days to address concerns surrounding forward foreign exchange auctions and market liquidity.
Speaking at a brief meeting with the CEOs of commercial banks in Accra, Dr. Asiama explained that the discussions will focus on improving the efficiency of the foreign exchange market and ensuring banks have sufficient liquidity to meet the needs of businesses and households.
“There is hope for further easing,” the Governor said, hinting at the possibility of a policy rate reduction if the current trend of easing inflation and stable market conditions continue.
He stressed that any adjustment to the rate will be done cautiously to protect the gains made in macroeconomic stability.
The Bank of Ghana recently cut its policy rate from 28 percent to 25 percent during the last Monetary Policy Committee meeting, citing a positive macroeconomic indicators.
Inflation has fallen steadily in recent months, aided by the relative stability of the cedi and improved foreign reserves.
Analysts believe that a future policy rate cut could lower borrowing costs, boost private sector lending, and help sustain Ghana’s economic recovery, particularly in sectors that rely heavily on credit access.
Source: Myjoyonline