Ghana postpones interest rate decision to coincide with end of IMF mission
ACCRA, Sept 22 (Reuters) – Ghana’s central bank said on Thursday it had postponed its next interest rate decision to Oct. 7 from Sept. 26, to coincide with the end of an IMF mission in the country.
Once considered the rising star of West African economies, the gold and cocoa-producing nation is grappling with its worst economic crisis in years as authorities scramble to slow rising inflation, curb spending and revalue the currency.
The central bank raised its main policy rate by 300 basis points to 22% last month in an emergency meeting to deal with inflation, above 30%, and other economic problems.
Ghana officially requested assistance from the International Monetary Fund in July and a team is expected to arrive in the country early next week. Read the full story
The bank’s monetary policy committee hopes the postponement of the rate decision “will allow the decision … to benefit from the broader discussions that will take place during this time,” the bank said in a statement.
Sources have previously said the IMF’s next visit would likely coincide with the start of a debt sustainability assessment.
A senior manager at credit rating agency Fitch warned on Wednesday that a sovereign default is “a real possibility” for Ghana, and that any kind of domestic debt restructuring would likely threaten several local banks with insolvency. Read the full story