Monetary policy is the flexible regulation of money supply and interest rates by monetary authorities with a vision of accomplishing specified or desired economic goals. Most governments attempt to regulate the degree of expansion of sources of funds. Monetary policy comes into actuality when there is an adjustment in the …
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Monetary policy is the flexible regulation of money supply and interest rates by monetary authorities with a vision of accomplishing specified or desired economic goals. Most governments attempt to regulate the degree of expansion of sources of funds. Monetary policy comes into actuality when there is an adjustment in the cost of credit, an adjustment in the source of funds and an adjustment in exchange rate. In anticipation of economic expansion, the government then, through the central bank, have the power to bring down the credit cost which can further cut down the rate exchange. A census sampling technique was used in the study. This study uses a descriptive research design. A sample size for this study is 9 listed banks. This reveals that the central bank is maintaining a tight monetary policy stance, which could lead to higher borrowing costs for banks and their customers. The standard deviation of 4.8666 indicates that there is a considerable variation in monetary policy rates, which could make it difficult for banks to plan and make decisions. The study further revealed that banks are required to hold only a small percentage of their deposits in reserve with the central bank. Based on the findings of the study, it is recommended that banks in Ghana should closely monitor and analyse the monetary policy rates set by the central bank, as these rates have a significant impact on their performance. Banks should pay close attention to the interest rate, as it has a moderate positive effect on the monetary policy rate
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