The Governor of Central Bank of Ghana, Ernest Addison, on Tuesday expressed concern that the current global policy tightening cycle could cause “significant challenges” for Ghana after the nation cut its key lending rate to a four-year low.
Ghana’s Monetary Policy Committee had cut its policy rate by 900 basis points over the past two years, culminating in the last policy rejig in May after inflation slowed to the lowest rate in at least five years.
Although price growth has since picked up, it still remains within authorities’ six percent to 10 percent target band.
Bloomberg.com quoted Addison as saying during a chat that he is “not sure” the U.S. Federal Reserve was paying enough attention to the effect of its policy moves on economies such as Ghana.
The CBG Governor said: “We are bracing ourselves for” more Fed rate hikes, he said. “It’s in anticipation of that that the policy rate was held at the last two meetings of the Ghana policy committee.”
The online news medium noted that while Ghana’s inflation expectations were well-anchored, rising oil prices and a weakening cedi pose a threat to the outlook
