Cost of borrowing is expected to go up further as the Monetary Policy Committee (MPC) of the Bank of Ghana has increased the policy rate by 250 basis points to 27 percent.
The rate which is of keen interest to businesses represents the rate at which the Central bank lends to commercial banks.
This subsequently trickles down to influence the average lending rate on loans to individuals and businesses.
Addressing the media in Accra, Chairman of the MPC and Governor of the Bank of Ghana, Ernest Addison attributes this to the inflationary pressures coupled with the increased foreign exchange of the market.
He, however, expressed confidence in the 2023 budget and was steadfast that the revenue implementation measures would complement the Monetary Policy stance in its effort to address inflationary pressures.
He said the committee will continue to monitor the development and make adjustments when necessary.
