(CTN News) – Ghana’s central bank Inflation has decided to maintain its main interest rate at 30% for the second consecutive meeting in order to continue the decline in inflation.
The country, known for its production of cocoa, gold, and oil, is currently facing its most severe economic crisis in decades and is in the process of negotiating a debt restructuring with its bilateral and commercial creditors.
Ghana has already received the initial portion of a $3 billion lending program from the International Monetary Fund and is anticipating further assistance after a meeting with the Fund’s executive board before the year’s end.
The Bank of Ghana emphasized the importance of keeping the policy rate tight for an extended period until is firmly under control and moving towards the medium-term target.
In October, Ghana witnessed a deceleration in inflation, with the rate dropping to 35.2% year-on-year. This is a significant improvement compared to the rates of 38.1% in September and 40.1% in August.
The Central Bank of Ghana has set a target inflation rate of 8%, allowing for a margin of error of 2 percentage points on either side of the target.
To further address the issue of excess structural liquidity and promote disinflation, the bank has decided to reset the unified Cash Reserve Ratio for total deposits to 15% starting from November 30th.
This measure is expected to provide an additional boost to the efforts to curb.