Ghana CB Cuts Rate to 20%

Ghana’s central bank cut its benchmark interest rate on Monday by 100 basis points to 20%, citing a drop in consumer inflation and the possibility of steady economic growth, governor Ernest Addison said, Reuters reported. The major commodity exporter this month raised its 2017 growth forecast to 7.9% from 6.3% on expected oil production, and 2018 growth is seen at 6.8, marking a turnaround of sorts for an economy that in the previous three years has averaged less than 4%. It has undergone an International Monetary Fund loan program to reduce its fiscal deficit and public debt and stabilize the volatile local currency. “The indicators of economic activity and business and consumer confidence remain strong. Inflation expectations remain subdued with core inflation measures in line to achieving the medium term inflation objective,” Addison said. Ghana has an inflation target of 8% plus or minus 2% in 2018.