Bank of Ghana holds key interest rate at 135
Ghanaâs central bank on Monday kept its main interest rate unchanged at 13.5% with concerns over rising inflation balanced out by optimistic Covid-19 recovery forecasts, Governor Ernest Addison said in a statement.
The Ghanaian economy grew by just 0.4% last year â" its slowest rate since 1983. But it has gained ground in 2021, expanding 3.1% in the first quarter and 3.9% in the second.
The bankâs Monetary Policy Committee sees Ghanaâs overall economic outlook continuing on an upward trajectory despite inflation having risen for the fourth month in a row in August.
âDevelopments continue to point to a sustained recovery in economic activity following the downturn at the peak of the pandemic,â Addison said.
âGiven these considerations, and the fairly balanced risks to inflation and growth in the outlook, the committee decided to keep the policy rate unchanged,â he added.
Ghanaâs consumer price inflation was at 9.7% year-on-year in August, with food inflation, the largest contributor to the countryâs overall inflation rate, rising for a third straight month.
Although the inflation rate remains within the central bankâs targeted band of 8% plus or minus 2 percentage points, Addison cautioned that close monitoring of the situation would be necessary to swiftly mitigate any impacts to local markets.
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