Ghana central bank holds policy rate as inflation slows By Reuters

By Maxwell Akalaare Adombila

ACCRA (Reuters) -Ghana’s central bank maintained its main interest rate at 29.5% on Monday, saying tight monetary policy and relative exchange rate stability were helping inflation fall.

The cocoa-, gold- and oil-producing West African nation is grappling with its worst economic crisis in a generation.

The International Monetary Fund’s executive board last week approved a $3 billion three-year support programme, allowing for an immediate disbursement of about $600 million and a potential path out of the crisis.

Ghana’s consumer inflation slowed for the fourth consecutive month in April after reaching a more than two-decade high of 54.1% in December, to 41.2% year-on-year from 45.0% in March.

“The committee further noted the significant decline in headline inflation from the beginning of the year … The percentage of items in the CPI (Consumer Price Index) basket with inflation of more than 50% is receding,” Bank of Ghana Governor Ernest Addison told a news conference.