The Bank of Ghana's Monetary Policy Committee will today November 28 announce its decision on the policy rate following its scheduled 109th meeting held last week.

With inflation currently standing at 40.4 percent in October this year, economic analysts have predicted a hike in the policy rate by some 200 basis points from its current 24.5 percent to 26.5 percent.

Ahead of the announcement, the Institute of Economic Affairs has explained that a hike may be necessary due to the widening gap between inflation and the policy rate which has compelled commercial banks to seek funds from BoG at much cheaper rates while lending to government at higher rates.

In a statement issued by the Institute, it added that a possible hike in the Policy Rate (PR) will impact the cost of lending and the cost of doing business in the country.

Meanwhile, Chairman of the Monetary Policy Committee and Bank of Ghana Governor, Dr. Ernest Addison will announce the decision taken by the Central Bank.

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