Throughout this year, Ghana has navigated through a series of economic challenges. The West African nation faced significant economic hurdles, including a two-decade high inflation rate. However, recent months have witnessed the Gold Coast making strides in recovering its economic standing.
A report from Reuters reveals that “Ghana’s consumer inflation slowed to 26.4% year on year in November from 35.2% in October.”
In January, Ghana’s inflation rate stood at 53.6%, as per data from the country’s National Bureau of Statistics. A month later, it saw a drop to 52.8%. Since then, the nation has experienced a consistent decline in inflation rates, with October marking a 14-month low.
To address inflation, the Bank of Ghana’s monetary policy committee maintained the policy rate at 30% in November for the third time within the year.
The bank emphasized, “There is a need to keep the policy rate tighter for longer until inflation is firmly anchored on a downward trajectory towards the medium-term target.”
Highlighting that inflation, although decelerating, remains high relative to the target, the bank stated, “The committee decided to maintain the monetary policy rate at 30.0 percent.”
Ghana appears to be swiftly heading towards economic recovery. Recently, the World Bank emphasized the significance of holding the interest rate, stating in its report, “The Bank of Ghana has cumulatively increased the monetary policy rate by 15.5 points since the beginning of 2022, to 30 percent in July 2023, and signed an MoU with the government to halt monetary financing of the fiscal deficit.”
The bank also indicated that the country’s economy is poised for growth, with the currency already stabilizing.
