• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Business Banking & Finance

Fitch Solutions projects 5.5% cut in monetary policy rate for 2024

2 years ago
in Banking & Finance, Business, Economy, Editor's pick, Features, highlights, Home, home-news, latest News
1 min read
0 0
0
164
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

Fitch Solutions projects 5.5% cut in monetary policy rate for 2024

In a bid to bolster economic activity and counter the headwinds faced by Ghana’s economy, the Bank of Ghana (BoG) is expected to embark on an aggressive monetary easing cycle, according to a recent report by Fitch Solutions.

The renowned financial research firm forecasts a substantial cut of 550 basis points (5.5%) in the benchmark interest rate by year-end 2024, bringing it down to 22%. This move comes amidst a backdrop of lackluster growth, fiscal consolidation efforts, and the need for stimulus measures to revive the economy.

Subdued Growth Prospects

Ghana’s real GDP growth has been persistently below trend, primarily driven by the fiscal consolidation efforts undertaken as part of the International Monetary Fund (IMF) program. Faced with the challenges of fiscal austerity, the BoG is expected to take the reins and deploy monetary policy tools to stimulate economic activity. With growth remaining lackluster, the central bank’s decision to embark on a monetary easing cycle appears to be a well-calibrated response to address the persisting growth challenges.

Falling Inflationary Pressures

Another key factor driving the BoG’s monetary easing stance is the anticipated easing of inflationary pressures. Fitch Solutions predicts that inflation will continue its downward trajectory, averaging at 17.1% throughout 2024. This decline is expected to be underpinned by several factors, including high base effects, stability in the exchange rate, and a moderation in global energy prices. By the close of 2023, the report projects that inflation will reach 20.2%, setting the stage for further reductions in the benchmark interest rate.

RelatedPosts

The Global Push for a Just Transition in Energy Jobs

Why the IEA Reinstated Its “Business as Usual” Scenario

GRA Targets Offshore Income in Expanded Tax Compliance Drive

Risks and Uncertainties

Despite the optimistic outlook, Fitch Solutions highlights potential risks to their forecast, particularly concerning the possibility of higher interest rates. The report highlights the critical role of external debt restructuring negotiations and its impact on investor sentiment towards Ghanaian assets. A stagnation in these negotiations could potentially weaken investor confidence, leading to currency depreciation and higher inflation. In such a scenario, the BoG may find itself compelled to adopt a more hawkish stance, deviating from the baseline scenario envisioned by Fitch Solutions.

As Ghana navigates its path towards economic recovery, the BoG’s anticipated monetary easing cycle serves as a crucial component of the country’s policy response. With growth remaining subdued due to fiscal consolidation efforts, the central bank’s proactive measures aim to provide the necessary stimulus to bolster economic activity. Coupled with the expected easing of inflationary pressures, these actions could help create a conducive environment for sustainable economic growth in the medium term.

Nevertheless, it is important to bear in mind that the forecasts provided by Fitch Solutions are subject to various uncertainties and potential developments. The actual outcomes may deviate from the projected scenario, underscoring the need for continued monitoring of economic indicators and policy decisions in Ghana.

Tags: BOGFitch SolutionsFitch Solutions projects 5.5% cut in monetary policy rate for 2024monetary policy rate
No Result
View All Result

Highlights

Gold Boom Drives Rising Costs for Australian Producers

La Liga: Barcelona Stages Late Comeback Against Levante as Atletico Madrid Drops Points Again

Premier League: Spurs Stun Man City at Etihad; Arsenal Dominates Leeds to go Top

CHAN 2024: Senegal, Sudan Complete Semifinal Lineup

From Promise to Peril: How Exam Fraud is Eroding Ghana’s Educational Soul

The 10 Fastest-Growing Trading Nations in Africa

Trending

Features

The Global Push for a Just Transition in Energy Jobs

August 24, 2025

The Global Push for a Just Transition in Energy Jobs For years, energy workers from the fossil...

Why the IEA Reinstated Its “Business as Usual” Scenario

August 24, 2025

GRA Targets Offshore Income in Expanded Tax Compliance Drive

August 24, 2025

Gold Boom Drives Rising Costs for Australian Producers

August 24, 2025

La Liga: Barcelona Stages Late Comeback Against Levante as Atletico Madrid Drops Points Again

August 24, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.