Close Menu
    Facebook X (Twitter) Instagram
    Facebook X (Twitter) Instagram
    SweetCrudeReportsSweetCrudeReports
    Subscribe
    • Home
    • Oil
    • Gas
    • Power
    • Solid Minerals
    • Labour
    • Financing
    • Freight
    • Community Development
    • E-Editions
    SweetCrudeReportsSweetCrudeReports
    Home » Bank of Ghana pausing to observe after cycle of rate hikes

    Bank of Ghana pausing to observe after cycle of rate hikes

    July 27, 2022
    Share
    Facebook Twitter LinkedIn WhatsApp

    Accra — Ghana’s central bank kept its main interest rate (GHCBIR=ECI) unchanged at 19%, Governor Ernest Addison said on Monday, citing a deceleration of the rate of inflation and concerns over economic growth.

    The bank has increased its prime lending rate by 550 basis points since the end of last year to tackle rampant inflation.

    *A man trades U.S. dollars for Ghanaian cedis at a currency exchange office in Accra, Ghana. REUTERS/Francis Kokoroko

    Addison said the bank was pausing to observe the impact on inflationary pressures of recent rate hikes and other policies, noting that the bank had observed that inflation had persisted and broadened to almost all items in the consumer basket.

    “The (bank) was of the view that it will appropriate to pause and observe the impact of the recent monetary policy measures already taken,” Addison told a news conference in Accra.

    Gold, cocoa and oil-producing Ghana turned to the International Monetary Fund earlier this month for a support package to help its economy hit by the coronavirus pandemic, rampant inflation and a depreciating currency.

    Addison said it is envisaged that a fund supported programme will help Ghana anchor expectations through implementation of reforms to restore credit worthiness and eventually lead to regain of access to the international capital markets.

    He added that financing of Ghana’s budget was entirely from domestic sources during the first half of the year, as planned borrowing from international sources did not materialise.

    Leslie Dwight Mensah, Economist and Research Fellow at the Institute for Fiscal Studies in Accra, said the decision to pause rate hikes was appropriate for now since the pace of inflation is starting to ease, as reflected in declining month-on-month price growth.

    “Moreover, hiking the rate has other costs, including on economic growth and the government’s borrowing costs, that the central bank needs to be mindful of,” Mensah said.

    *Christian Akorlie, Bate Felix; Editing: Jon Boyle & Angus MacSwan – Reuters

    Follow us on twitter

    Related News

    Indonesia eyes Nigeria for trade, investment expansion

    Africa-FX – Most currencies expected to be stable

    AFC champions shift of $4trn in domestic savings into Africa’s infrastructure transformation

    Comments are closed.

    E-book
    Resilience Exhibition

    Latest News

    Crude climbs on US jobs report, China talks

    June 6, 2025

    Be deliberate in securing govt facilities in your communities – IBAS

    June 6, 2025

    UAE’s power capacity to reach 79.1GW in 2035

    June 6, 2025

    Gold steady near week high as markets brace for key US jobs data

    June 6, 2025

    Nigeria’s renewable power capacity to reach 1.7GW in 2035

    June 6, 2025
    Demo
    Facebook X (Twitter) Instagram
    • Opec Daily Basket
    • Oil
    • Power
    • Gas
    • Freight
    • Financing
    • Labour
    • Technology
    • Solid Mineral
    • Conferences/Seminars
    • Community Development
    • Nigerian Content Initiative
    • Niger-Delta Question
    • Insurance
    • Other News
    • Focus
    • Feedback
    • Hanging Out With Markson

    Subscribe for Updates

    Get the latest energy news from Sweetcrudereports.

    Please wait...
    Please enter all required fields Click to hide
    Correct invalid entries Click to hide
    © 2025 Sweetcrudereports.
    • About Us
    • Advertise with us
    • Privacy Policy

    Type above and press Enter to search. Press Esc to cancel.