Ghana's central
bank surprised analysts on Monday by raising its main interest rate to 29.5%,
indicating that the monetary committee does not yet see the country's economic
situation stabilizing despite two months of slower inflation.
Ghana, one of
West Africa's most lucrative economies, is experiencing its worst financial
crisis in the last 2 decades and is restructuring its debt in order to get a $3
billion loan from the International Monetary Fund.
In an effort to
limit spiraling price surges, the central bank has raised its primary lending
rate by 12.5 percentage points in the last year, from 17% in March 2022 to
54.1% in December.
The Bank of
Ghana Governor Ernest Addison disclosed during a news conference that fixing
Ghana’s flailing economy is directly tied to fixing its monetary complications.
SPORTS ANDFITNESS WORKOUTS GADGETS
Consumer
inflation in Ghana fell to 52.8% year on year in February, down from 53.6% in
January. On Monday, Addison predicted that inflation will hit 29% by the end of
the year.
The Central Bank
governor stated on Monday that discussions with lenders were "doing
well," and that the bank had finalized a zero financing agreement with the
finance ministry for the 2023 budget, which was a prerequisite for IMF program
support.
The governor of
the Bank also stated that commercial banks' necessary reserve ratios will rise
to 14% from 12% beginning April 13, with the intention of ensuring banks have
enough liquidity in the aftermath of the country's domestic debt restructuring,
which was concluded last month.
The governor of
the Bank also stated that commercial banks' necessary reserve ratios will rise
to 14% from 12% beginning April 13, with the intention of ensuring banks have
enough liquidity in the aftermath of the country's domestic debt restructuring,
which was concluded last month
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