Ghana likely to maintain current rates

Ghana is expected to maintain the current interest rates to combat high inflation and stabilise the official currency of cedi, Bloomberg reported

Economists anticipate no change from the benchmark rate of 29 per cent, with Governor Ernest Addison confirming the decision in Accra.

Mark Bohlund from REDD Intelligence suggests holding rates to bolster the cedi and curb inflation. The cedi has weakened by 10 per cent against the dollar since March, with inflation averaging 25 per cent. Moreover, declining cocoa exports contribute to the currency’s slide.

Bohlund and Courage Boti of GCB Capital Ltd. predict a possible rate cut in July, as Ghana awaits a $360 million IMF disbursement and negotiates debt restructuring. Boti suggests July for a rate cut due to expected easing currency pressures and a potential slowdown of inflation.