Ghana’s Central Bank Hikes Key Rate More Than Expected

Ghana’s central bank extended its steepest-ever phase of monetary tightening to re-anchor inflation expectations.

(Bloomberg) — Ghana’s central bank extended its steepest-ever phase of monetary tightening to re-anchor inflation expectations.

The monetary policy committee increased the key rate by 150 basis points to 29.5%, Governor Ernest Addison told reporters in Accra, the capital, on Monday. None of the economists in a Bloomberg survey forecast a rate hike of that size.

The move adds to 14.5 percentage points of hikes since November 2021, aimed at reining in inflation that’s more than five times the 10% ceiling of the MPC’s target range and the sixth-highest in the world among 120 nations, including the eurozone, tracked by Bloomberg. 

–With assistance from Mark Evans and Yinka Ibukun.

More stories like this are available on bloomberg.com

©2023 Bloomberg L.P.