Governor of the Central Bank, Dr. Ernest Addison, announced that private sector credit experienced a contraction of 7.5% during the review period in October 2023.

He explained that banks are directing their resources toward short-term investments instead of extending credit, responding to the heightened risks associated with lending amid deteriorating macroeconomic conditions and the impact of the Domestic Debt Exchange Programme (DDEP).

Dr. Addison provided this information during the 115th Monetary Policy Committee (MPC) press briefing on November 27, 2023, highlighting a significant shift from the 57.3% growth recorded in October 2022.

“In real terms, credit to the private sector contracted significantly by 31.6 percent relative to a growth of 3.0 percent recorded over the same comparative period,” Dr Addison said.

He continued, “On the money market, interest rates broadly tightened at the short end of the yield curve. The 91-day and 182-day Treasury bill rates fell marginally to 29.40 percent and 31.37 percent respectively, in October 2023, from 31.53 percent and 32.61 percent respectively, in October 2022."

"The rate on the 364-day instrument, however, increased to 33.16 percent from 32.32 percent over the same comparative period,” the BoG Governor added.

For the second time in a row, the BoG has maintained the policy rate at 30%, citing core inflation measures that are beginning to trend lower.