Ghana’s central bank has implemented its initial interest rate reduction since 2021, decreasing the main rate by 100 basis points to 29% on Monday. This move comes in response to a continuous decline in inflation for the fifth consecutive month, notably in December.
The country has been actively managing its debts to recover from a severe economic crisis, experiencing inflation exceeding 50% annually in late 2022. However, over the latter part of 2023, the inflationary pressures significantly eased, reaching 23.2% year-on-year in December, down from 26.4% in November and 35.2% in October.
Ernest Addison, the Governor of the Bank of Ghana, announced during a news conference that the bank anticipates inflation to further decrease to 13%-17% by the end of this year and to 6%-10% by 2025. The central bank maintains a target inflation rate of 8%, with a margin of error of 2 percentage points on either side.
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News Source: Techeconomy
