The Monetary Policy Committee (MPC) will start its quarterly meeting on August 29, 2011 to review developments in the country�s economy for the last three months.
The meeting, which will be chaired by the Governor of the Bank of Ghana (BoG), Paa Kwesi Amissah Arthur, will come out with strategies that will help improve the current macroeconomic trend and lead to job creation as well as stabilization in prices of goods and services.
The 46th regular meeting will be used to discuss matters that will ultimately boost confidence in the economy.
The country�s economy has remained relatively stable but is still confronted with certain challenges such as high unemployment rate and lack of business confidence due to high interest rate.
The seven-member team is also expected to discuss issues that will influence banks lending rates as well as preserve the Ghana Cedi which has remained relatively stable, especially against the US Dollar for the last couple of months.
With inflation set to remain within the 8-10 percent band for sometime whilst the local currency continue to remain resolute, the MPC is likely to maintain the prime rate, which unexpectedly went down to 12.5 percent at the last meeting on July 8, 2001.
Based on the performance of the local currency lately, analysts have predicted that the Ghana Cedi will end the year around GH�1.51 against the dollar. A dollar was however trading between GH�1.496 and GH�1.525 as at yesterday.
This means that profit margins of firms and prices of goods and services will not be severely affected.
The policy rate went down by 50 basis points during the last meeting in July forcing most banks to adjust their base lending rates, but the rates still remain high making it difficult for many businesses and individuals to access credit.
Market watchers are expected to monitor proceedings of the meeting keenly as the apex bank will crack the whip.
Some economic indicators such as the country�s fiscal and trade deficits, foreign reserves, among other important indicators, are expected to be reviewed by the committee.
The MPC will make the necessary projections for the next quarter of this year. In addition, it will also assess the business risk factors.
As usual, the decision of the MPC will be announced at a press briefing on Wednesday, August 31.
Analysts are expected to evaluate the Central Bank�s assessment of the economy and suggest appropriate ways that will help stimulate the macro-economy.
The suggestions are expected to help the country ensure a stable and vibrant economic environment where adequate private sector participation is anticipated.
By Charles Nixon Yeboah
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