Central bank hikes lending rate as inflation nears 40%
The cost of loans in Ghana is set to increase again for the average borrower, following an upward review of the rate at which banks can borrow money from the central bank, otherwise referred to as the policy rate.
The central bank has announced a hike in the policy rate by 250 basis points to 24.5%, from 22% in August, the highest increment since 2017.
This will further worsen the high cost of living in the country.
The move, according to the central bank, is to curb the rising inflation of nearly 40%.
Inflation in the country is likely to go up significantly in the coming months following recent adjustments in utility tariffs and local currency depreciation.
Multiple credit rating agencies have downgraded the economy to junk status, meaning the country is no longer credit-worthy.
Ghana is currently negotiating a $3bn (£2.7bn) IMF bailout programme to run for a period of three years.