Ghana’s inflation continues to drop as predicted in December last year when the inflation dropped for the sixth consecutive time, making the latest drop from 16% in December 2009 to 14.8% in January the seventh consecutive time.
The business community in Ghana especially has been clamouring for a drop in the prime rate following drop in inflation. The current prime rate in Ghana is 18%. The community argues that the high cost of borrowing is crippling businesses in the face of the yet to be fully recovered from global economic crisis.
The Bank of Ghana Monetary Committee (MPC) announced it will start meeting Monday February 15 to review the economy and it is expected that at a press conference to follow on Friday February 19, a new reduced prime rate is expected to be announced.
The Bloomberg news citing an email from Razia Khan, Chartered Bank’s regional head of research for Africa said Slowing inflation is “reinforcing our view that the way is open for the MPC to cut interest rates by at least 100” basis points.
By Emmanuel K. Dogbevi