The Bank of Ghana(BOG) and its Monetary Policies

By
EMMANUEL E. ARHIN,Ch.FE
Figure 1.1 : Monetray Policy Rate versus Inflatin Rate
25

Ineffectivess of the Monetary Policy Rate to

control the rate of inflation In Ghana.

20

15

Inflation Rate
10

MPR

0
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun SEP Dec Mar
201020102010201020112011201120112012201220122012201320132013201320142014201420142015

Figure 1.2: Inverted Yield Curve

Inverted Yiel Curve

Due to continual depreciation of the Ghana cedis,excessive government
borrowings ,ineffectiveness of policies and high government budget deficits
among others.
30

25

20

15

T-Bill Rate(%)

10

0
91 days

182 days

1 year note 2 year note 3 year note 5 year note 7 year note

Figure 2.0 Statistics on Monetary Policy rates,Inflation and Treasury bill rates
( Data from BOG,Reuters and BFT news paper)

Monetary Policy Rate versus

Inflation Rate
Year

Qrtr

Inflation Rate(%)

Inverted Yield Curve as at 20/05/15

MPR(%) Maturities

T-Bill Rate(%)

2010 Mar

13.3

13.5 91 days

25.0768

2010 Jun

9.5

13.5 182 days

25.8589

2010 Sep

9.4

13.5 1 year note

22.5

2010 Dec

8.58

13.5 2 year note

23

2011 Mar

9.13

12.3 3 year note

25.4

2011 Jun

8.59

12.3 5 year note

19.04

2011 Sep

8.4

12.3 7 year note

18

2011 Dec

8.58

12.3

2012 Mar

8.78

13.7

2012 Sep

9.43

15

2012 Dec

8.84

15

2013 Mar

10.4

15

2013 Jun

11.6

16

2013 Sep

11.9

16

2013 Dec

13.5

16

2014 Mar

14.5

18

2014 Jun

15

18

2014 SEP

16.9

19

2014 Dec

17

21

2015 Mar

16.6

21