Accra, May 22, GNA - Standard Chartered Bank on Thursday announced that its base rate now stands at 23.24 per cent. A statement signed by Nii Okai Nunoo, Area Head of Corporate Affairs, West Africa, said the new rate came into effect on May 21. The new base rate follows the increase in the prime rate by the Bank of Ghana last Monday. The Monetary Policy Committee (MPC) increased the prime rate from 14.25 per cent to 16 per cent, citing the threat posed to the economy by increasing oil prices and high inflation. Dr. Paul Acquah, Chairman of the MPC, said the decision to raise the rate was taken with the view to strengthening the anchor for macro-stability. Businesses have expressed fears that an increase in the prime rate would translate into high cost of borrowing from banks and add to their cost of production. But Dr Acquah said the increase in the rate was necessary to ensure a stable macro-economic environment, which was essential for the long-term growth of the economy.