The Central Bank of Ghana lowers its benchmark rate by three percentage points
The Central Bank of Ghana has decided to cut its key interest rate by three points in response to slowing inflation and the exit from a severe economic crisis, reports the information site Africanews.
John Dramane mahamr
Photo LNT
According to this media, the monetary policy committee adopted this reduction by a majority, dropping the rate from 28% to 25%, the biggest decrease ever recorded in the country’s history.
The Bank emphasizes that this decision reflects growing confidence in the downward trend in inflation, which is leading to a faster drop in consumer prices than ever before. Moreover, since the beginning of the year, the cedi, the local currency, has appreciated by more than 40% against the US dollar, thanks to the increase in foreign exchange reserves, growth in exports and increased investor confidence.
Earlier this month, the International Monetary Fund praised the progress made by Ghana, a significant producer of cocoa and gold, in restructuring its debt and the economic reforms launched since January, upon the coming to power of President John Mahama.
However, Africanews emphasizes that despite these advances, including the drop in fuel and transportation prices, a large part of the population continues to face difficulties as the cost of living remains high in the country.