Bank of Ghana set to raise interest rates in January
The Bank of Ghana is expected to hike interest rates by up to 175 basis points at policymakers' meeting this month as the West African country seeks to rein in runaway inflation .
A Reuters poll of eight economists conducted between January 18 and 23 expects rates to be raised to 28.8%, the median forecast.
While two experts expect the Ghanaian apex bank to maintain the current rate at 27%, the others expect an upward adjustment of between 100 and 400 basis points.
“In Ghana, although the central bank raised interest rates by 1,350 basis points, inflation continued to rise,” Reuters quoted Virág Fórizs of Capital Economics as saying.
Ghana's economy is feeling the brunt of a tightly squeezed currency and provocative inflation, with consumer price inflation hitting a 22-year high last month.
The government suspended payments on dollar bonds, foreign commercial loans, and some bilateral debt, causing bonds to trade at a very difficult level in December.
"With price pressures showing no signs of easing, we expect policymakers to raise the benchmark rate further," Fórizs added.
Rates in the country are expected to jump 25 basis points to 29% in March, but will remain stable in May.
The cedi topped the chart of the world's worst performing currencies last year.
The inflation rate in the West African country also jumped to 54.1% in December.
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The Bank of Ghana is expected to hike interest rates by up to 175 basis points at policymakers' meeting this month as the West African country seeks to rein in runaway inflation .
A Reuters poll of eight economists conducted between January 18 and 23 expects rates to be raised to 28.8%, the median forecast.
While two experts expect the Ghanaian apex bank to maintain the current rate at 27%, the others expect an upward adjustment of between 100 and 400 basis points.
“In Ghana, although the central bank raised interest rates by 1,350 basis points, inflation continued to rise,” Reuters quoted Virág Fórizs of Capital Economics as saying.
Ghana's economy is feeling the brunt of a tightly squeezed currency and provocative inflation, with consumer price inflation hitting a 22-year high last month.
The government suspended payments on dollar bonds, foreign commercial loans, and some bilateral debt, causing bonds to trade at a very difficult level in December.
"With price pressures showing no signs of easing, we expect policymakers to raise the benchmark rate further," Fórizs added.
Rates in the country are expected to jump 25 basis points to 29% in March, but will remain stable in May.
The cedi topped the chart of the world's worst performing currencies last year.
The inflation rate in the West African country also jumped to 54.1% in December.
Support the integrity and credibility journalism of PREMIUM TIMES Good journalism costs a lot of money. Yet only good journalism can guarantee the possibility of a good society, an accountable democracy and a transparent government. For free and continued access to the best investigative journalism in the country, we ask that you consider providing modest support to this noble endeavour. By contributing to PREMIUM TIMES, you help sustain relevant journalism and keep it free and accessible to everyone.Donate
[embedded content]TEXT ANNOUNCEMENT: Call Willie - +2348098788999
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