This photo taken on Dec. 20, 2022 shows the entrance of the Bank of Ghana in Accra, Ghana. Ghana has suspended the servicing of most of its external debts amid a worsening economic crisis, said the Ministry of Finance on Monday. (Photo by Seth/Xinhua)
Ghana’s central bank has maintained its benchmark interest rate at 29.5 percent given the decline in inflation, Ernest Addison, the bank governor, said Monday.
This decision came after the International Monetary Fund last week approved a 3 billion-U.S.-dollar loan for Ghana, whose economy has been facing challenges since 2021.
The Monetary Policy Committee of the Bank of Ghana “noted the significant decline in headline inflation from the beginning of the year of more than 12 percent,” Addison told a press briefing after a monetary committee meeting.
“The percentage of items with inflation of more than 50 percent and above is receding, indicating a strong return to the disinflation path,” he said, adding that tight monetary policy and currency stability helped cool inflation.
The central bank has signed a Memorandum of Understanding with the government to ensure zero-financing of the central government budget to eliminate fiscal dominance and allow for faster ease in inflation, he said. “These policies should provide the much-needed anchor to reinforce the disinflation process and reset the economy on the path of recovery.” Enditem
