Ghana’s central bank has raised its benchmark interest rate to the highest level in more than five years, seeking to curb inflation that’s expected to remain high.
The monetary policy committee (MPC) lifted the cost of borrowing by 250 basis points to 24.5%.
The move brings cumulative rate increases to 10 percentage points this year, making Ghana the second-most aggressive central bank on the continent, after Zimbabwe.
Ghana, like other central banks, is raising interest rates at a fast pace to quell surging inflation, bolster its currency and attract capital flows from investors being lured by higher yields in the US.
The country’s cedi has weakened 41% against the dollar this year, the world’s second-worst performer after Sri Lanka’s rupee. The country’s annual price growth quickened to 33.9% in August, the highest level since 2001.
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