Wednesday, July 6, 2011

Bank of Ghana Cuts Lending Rate 50bps to 12.50%

The Bank of Ghana cut its key lending rate by 50 basis points to 12.50% in order to help boost lending as inflationary pressures reduce.  Bank of Ghana Governor, Kwesi Amissah-Arthur, said: "Inflation is going down and we don't see the banks responding (to lower interest rates)" and further noted that "the bank is confident that the annual inflation target of 9 percent is achievable".

The Bank of Ghana also reduced its lending rate by 50 basis points to 13.00% at its May meeting this year.  Ghana reported inflation of 8.9% in May, compared to 9.0% in April, and 9.1% in the previous month.  Ghana's economy grew 23% in the March quarter, compared to 9.5% in the previous three months, as Africa's newest oil exporter saw export earnings boosted by oil sales, as well as a high gold price and cocoa volumes.


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