IN GHANA: POLICYS RATES ARE CUTS AS INFLATIONS EASES

Ghana’s central bank implemented a significant reduction in its primary interest rate, decreasing it by 100 basis points to 29% on Monday. This marks the first instance of a rate cut since 2021, prompted by a consistent decline in inflation over the past five months, particularly in December.

The nation has been actively restructuring its debts, aiming to recover from its most severe economic crisis in a generation, characterized by inflation soaring beyond 50% annually in late 2022. However, the latter half of 2023 witnessed a notable alleviation of price pressures, with the year-on-year inflation rate dropping to 23.2% in December from 26.4% in November and 35.2% in October.

During a press conference, Ernest Addison, the Governor of the Bank of Ghana, revealed that the bank officials anticipate a further decline in inflation to a range of 13%-17% by the year’s end and a subsequent reduction to 6%-10% by 2025.

It’s noteworthy that the central bank’s inflation target is set at 8%, allowing for a margin of error of 2 percentage points on either side.

News Source: Techeconomy