By Modupe Gbadeyanka
The Bank of Ghana has reduced the country’s benchmark rate to 23.5 percent from 25.5 percent as inflation eases and the West African nation’s currency, the Cedi, recovers.
This is the second time in four months that Ghana’s central bank would be slashing the interest rate as the economy finds its bearing again.
On Monday, the Governor of Bank of Ghana, Mr Abdul Nashiru Issahaku, explained to newsmen in Accra, the country’s capital city that the benchmark rate was cut because the underlying inflation pressures have eased considerably.
He pointed out that inflation is projected to trend down towards the medium term target, pointing out that there were indications that growth was likely to remain significantly below potential.
Before the present government, Ghana struggled with its economy, a thing that became worrisome to many citizens both home and abroad.
The gross domestic product (GDP) of Ghana recorded a rise by 3.6 percent in 2016.
As a way to boost the economy, President Nana Akufo-Addo says he plans to increase spending even as it reduces taxes on goods including fuel.
