The Bank of Ghana is likely to end its sequence of interest rate hikes today, September 25th, despite a drop in inflation in the country’s economy.
According to a Reuters Poll, 12 analysts were polled during the past week, with the majority (ten analysts) expecting the Bank of Ghana to retain its existing interest rates at today’s meeting. However, one expert projected a 150-basis-point increase, while another recommended a 200-basis-point decrease.
The West African country’s central bank has raised interest rates by 1,650 basis points in the last two years as it battles excessive inflation. Ghana’s headline inflation rate fell to 40.1% in August, a 10-month low that relieved pressure on the central bank to continue raising borrowing costs.
According to the latest data from the West African nation, the annual inflation rate has dropped from 43.1% in July to 40.1%, according to the Government Statistician, Samuel Kobina Annim. Kobina Annim revealed that the key reason for the slowing inflation is a drop in food costs. Food inflation has dropped to 51.9% from 55% in July, while non-food price increase has slowed to 30.9% from 33.8%. Prices fell 0.2% month on month.
Hundreds of disgruntled individuals gathered in Accra, Ghana’s capital, on Saturday, September 23rd, for the third straight day of protests against the government, which have been spurred by economic problems and have resulted in multiple arrests. Protesters, some holding banners or the national flag, marched while being supervised by riot police, voicing their concerns about rising living costs and a lack of work possibilities.
The West African country, which is wealthy in gold, oil, and cocoa, is experiencing its worst economic crisis in decades, owing mostly to rising public debt.