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Ghana: Interest rate benchmark remains unchanged

By Dasmani Laary in Accra
Posted on Tuesday, 19 July 2016 10:57

The country’s inflation rate eased to 18.40 per cent last month, from 18.9 per cent in the month before, as steady performance of the local currency, the cedi, against the greenback led to slower rise in cost of fuel and imported items.

The pace of decline in inflation had been reinforced by the current tight monetary policy stance

“In assessing the current economic conditions,” Abdul-Nashiru Issahaku, governor of bank of Ghana told journalists on Monday, the monetary policy committee “views the risks to inflation and growth as balanced and decided to maintain the policy rate at 26 per cent.”

“The pace of decline in inflation had been reinforced by the current tight monetary policy stance and stability in the local currency,” he added.

However, the governor said, headline inflation was likely to move within the medium term target band of 8 per cent plus or minus 2 per cent in the third quarter of 2017, against earlier projections of mid-2017.

The key risk to inflation is the extent to which petroleum products’ prices, transport costs and utility tariffs are adjusted upwards in the remaining quarters and the potential effects from any adjustments on prices thereof.

The bank said it was committed to maintaining price stability in the country and would continue to monitor developments in the economy and take further policy actions when necessary.

Ghana’s growth prospects for the rest of the year would be impacted positively by the stability in the foreign exchange market, continued improvement in consumer and business sentiments, and the realisation of additional oil and gas production from the TEN (Tweneboa, Enyenra and Ntomme) oil fields, bank officials said. lesbian gay movies collection

However, tight credit conditions, electricity supply shortfalls and continued fiscal tightness may moderate the pace of economic expansion, Issahaku said.

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