Ghana ponders rate cut
In an election year there is a risk of prices rising and currency weakening if government misses fiscal targets again
30 January 2020 - 15:16
Accra — Ghana’s central bank is caught between cutting interest rates to boost the economy and running the risk of weakening the currency, which could drive up inflation and spook investors ahead of December’s elections.
One the one hand, inflation ended the year slightly below the government’s projection and economic growth slowed in the third quarter, giving room for an interest-rate cut. But a repeat of the government missing its fiscal targets in previous election years could fuel price growth and weigh on the currency, causing debt costs to soar...
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