Sunday, 23 June

We don’t benefit from high interest rates – BoG

Business
BoG

The Bank of Ghana (BoG) has stated that it does not benefit from high interest rates.

In a financial literacy card, the BoG explained that high interest rates increase the cost of open market operations and result in central bank losses.

However, it also mentioned that this is a necessary price to pay to bring inflation down.

An interest rate is the percentage of a loan or deposit that is charged or paid by a lender or financial institution to a borrower for the use of money. It is essentially the cost of borrowing money or the reward for saving money.

Interest rates can apply to various financial products, including loans, mortgages, credit cards, and savings accounts.

Source: Classfmonline.com