Ghana hikes lending rate as inflation nears forty percent
Written by Olarotimi Oshin on October 7, 2022
The cost of loans in Ghana is set to increase again for the average borrower, following an upward review of the rate at which banks can borrow money from the central bank, otherwise referred to as the policy rate.
The central bank has announced a hike in the policy rate by 250 basis points to 24.5%, from 22% in August, the highest increment since 2017.
The move, according to the central bank, is to curb the rising inflation of nearly 40%.
Inflation in the country is likely to go up significantly in the coming months following recent adjustments in utility tariffs and local currency depreciation.
This will further worsen the high cost of living in the country.
However, Ghana is currently negotiating a $3billion dollars IMF bailout programme to run for a period of three years.
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