Ghana maintains a key interest rate in the face of inflationary pressures

Ghana’s central bank held its benchmark interest rate for the sixth meeting in a row while monitoring the impact of the new tax measures on inflation.

The monetary policy committee kept the rate at 14.5 percent, the central bank said in an emailed statement on Monday. That coincided with the forecast of the five economists in a Bloomberg poll.

Inflation in the West African nation has been above the central bank’s target range of 6% to 10% for most of the past year, as food prices rose due to supply constraints caused by the restrictions. to slow the spread of the coronavirus.

The Bank of Ghana expects the price growth rate to return to its target in the second quarter of this year, it said in the statement.

“Inflation risks in the short term are broadly balanced, but short-term pressures are emerging from rising oil prices and the direct and secondary effects of the revenue measures announced in the 2021 budget,” the MPC said. in the statement. Monetary policy should remain vigilant to monitor these risks, he said.