Friday, July 19, 2024

Ghana Central Bank hikes interest rate to 30%

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Ghana’s Central Bank has increased key interest rates 30% to curb the country’s soaring inflation.

This is a 0.5% increase.

The hike was announced on Monday at the end of its monetary policy meeting.

“A hike in rates is the best way to go in the midst of the crisis,” financial analyst Richmond Frimpong told the BBC.

This makes it more expensive to borrow money, and is intended to reduce consumer spending.

The West African nation has been grappling with a battered economy marred by inflation currently over 42%, huge public debts and a cost-of-living crisis.

Last Friday, the World Bank said about 850,000 more Ghanaians were pushed into poverty by the end of 2022 owing to the rising cost of living marred by a loss in purchasing power, and an increase in food prices.

Africa’s largest gold producer has received $600m (£518m), the initial tranche of a $3bn bailout programme from the International Monetary Fund aimed at stabilising its economy while it embarks on debt restructuring and other economic policies aimed at boosting revenues.

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