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Ghana’s central bank lowers interest rate as inflation declines

Published

11 months ago

January 29, 2024

Following a decline in inflation for the fifth consecutive month in December, Ghana’s central bank slashed its main interest rate by 100 basis points to 29% on Monday, marking its first rate decrease since 2021.

The country has been attempting to restructure its debts in an attempt to recover from the worst economic crisis in a generation, which culminated in late 2022 inflation that was above 50% annually.

Ghana, which went into default on the majority of its external debt in December 2022 due to skyrocketing servicing expenses, is also seeking a rescue agreement with holders of roughly $13 billion in foreign notes.

However, throughout the second half of 2023, pricing pressure decreased significantly, from 26.4% in November and 35.2% in October to 23.2% year over year in December.

Governor Ernest Addison of the Bank of Ghana stated during a press conference that current projections for inflation indicate a decline to 13%–17% by year’s end and 6%–10% by 2025. The 8% inflation target set by the central bank has a 2% point error margin on either side.

“Several factors have supported the disinflation process, namely, the tightening monetary policy stance throughout 2023, favourable international crude oil prices which led to stable ex-pump prices and transportation costs, and relative stability in the exchange rate,” Addison said on Monday.

The agreement to restructure $5.4 billion in loans with its official creditors earlier this month marked a significant step forward for Ghana’s government in its pursuit of debt relief. In the wake of the accord, the World Bank granted $300 million in financing and the International Monetary Fund permitted an immediate transfer of roughly $600 million under its $3 billion bailout plan.

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Moroccan annual inflation rises to 0.8% in November

Published

14 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”