ACCRA, July 23 – Ghana’s central bank has kept its benchmark interest rate at 14%, making it the second straight meeting without a rate cut as rising geopolitical tensions continue to pose risks to inflation.
The decision matched the expectations of economists surveyed by Reuters and reflects the Bank of Ghana’s cautious approach as it works to keep price growth under control.
Speaking after the policy meeting, Governor Johnson Asiama said the conflict involving Iran and the resulting disruption to trade routes had renewed volatility in global energy markets, increasing uncertainty for inflation.
Although inflation remains close to the lower end of the central bank’s target range of 6% to 10%, Asiama said inflation expectations and core inflation indicators have moved higher.
Newest data showed consumer inflation rose to 5.3% year-on-year in June, up from 3.7% in May, reversing the previous month’s decline.
The rate decision comes as Ghana continues to recover from its worst economic crisis in decades. In recent months, the country has been working to restore macroeconomic stability while keeping inflation within its target range.
Meanwhile, Ghana is not alone in taking a cautious stance. Nigeria’s central bank also left its benchmark interest rate unchanged this week, citing renewed fighting involving the United States and Iran as a growing source of global economic uncertainty.
