Ghana Hikes Interest Rate To 19%

The Bank of Ghana raised its benchmark monetary policy rate by 200 bps to 19% during its May 2022 meeting, against market expectations of 18.75%.

It was the second consecutive rate hike this year, bringing borrowing costs to the highest level since February of 2018, to re-anchor inflation expectations and help foster macroeconomic stability.

The headline inflation accelerated to 23.6% in April, the highest in almost two decades, above the central bank’s preferred range of 6% to 10% for eight consecutive months.

Governor Ernest Addison said that central bank forecasts show a “prolonged horizon” for inflation to return to its target band.

Meanwhile, growth prospects in the domestic economy remain positive and the Bank’s high-frequency indicators point to continued and increased momentum in economic activities

Credit: trading economics

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s