Ghana’s future seems bright as it’s year-long fight with inflation appears to be ending
A report by the American news agency, Reuters, shows that “Ghana’s consumer inflation slowed to 26.4% year on year in November from 35.2% in October.”
In January Ghana’s inflation rate, according to the data set from the country’s National Bureau of Statistics, was 53.6% and a month later it dropped to 52.8%.
Since then the country’s inflation rate has been in a steady decline, with October’s numbers coming in at a 14-month low.
To combat inflation, the Bank of Ghana’s monetary policy committee held the policy rate at 30% in November for the third time in a year.
The bank stated, “There is a need to keep the policy rate tighter for longer until inflation is firmly anchored on a downward trajectory towards the medium-term target.”
The bank also added, “The committee noted that though inflation is decelerating, it remains high relative to target. Therefore there is a need to keep the policy rate tighter for longer until inflation is firmly anchored on a downward trajectory towards the medium-term target. Given these considerations, the committee decided to maintain the monetary policy rate at 30.0 percent.”
Ghana seems to be on a fast track to economic recovery. Just recently the World Bank reiterated the importance of holding the interest rate as it noted in its report “The Bank of Ghana has cumulatively increased the monetary policy rate by 15.5 points since the beginning of 2022, to 30 percent in July 2023, and signed an MoU with the government to halt monetary financing of the fiscal deficit.”
The bank also stated that the country’s economy is expected to grow and that the currency is already stabilizing.
