Policy Rate maintained at 29.5%
Fall in Inflation Rate is a Positive Sign for Ghana, But Complacency is Not an Option
Data released by the Ghana Statistical Service (GSS) on May 10, 2023, indicates that the annual inflation rate decreased to 41.2% in April 2023 from 45.0% recorded in March 2023. This marks a fourth consecutive decline in the growth rate of the consumer price index (CPI) since peaking at 54.1% in December 2022. The data […]
The Bank of Ghana’s Decision to Hike Key Policy Rate: Rationale and Implications
The Monetary Policy Committee (MPC) of the Bank of Ghana recently concluded its 111th meeting, held from March 22nd to March 24th, 2023. Following this, on March 27th, 2023, the committee issued a press release announcing a hike of 150 basis points to its key policy rate, bringing it to 29.5%. The primary reason for […]
Policy Incoherence: Why Inflation is Running Away from the Bank of Ghana’s Target
The Bank of Ghana (BoG) commenced its policy rate hike cycle in November 2021 well ahead of major central banks such as the US Federal Reserve. US inflation in recent months has peaked and started declining while inflation in Ghana shows no signs of sustained disinflation. The Ghana Statistical Service (GSS) in its December 2022 […]
Summary from the MPC Meeting
The Bank of Ghana’s Forecasted Monetary Policy Rate for January 2023 is expected to lift the Policy Rate to its highest level in 21 years
Introduction The Bank of Ghana’s Monetary Policy Committee will hold its meeting from January 24th to 27th, with a press release due on January 30th. We anticipate the policy rate, which influences various financial indicators like lending rates, fixed income yields, stock market performance, and exchange rates, to rise by 300 basis points to 30%. […]
The Economics of the Gold for Oil Barter Policy
The minister of finance, Ken Ofori-Atta, presented to parliament the budget statement and economic policy of the government of Ghana for the 2023 financial year on 24th November 2022. This was immediately followed by an economic policy update on Facebook by the vice president, Dr. Mahamudu Bawumia, who is also the chair of the economic […]
The Illusion of No Haircuts: Ghana’s Proposed Domestic Debt Exchange Programme is Worse than a 100% Haircut on Principal
Introduction On Monday, 5th December 2022 the Republic of Ghana announced that it was inviting eligible bond holders to exchange approximately GHS137.3 billion of domestic bonds for a package of new bonds. The domestic debt exchange (DDE) programme is part of a more comprehensive agenda to restore debt sustainability. The government has made further amendments […]
2023 Tesah Budget Review
Budget 2023 – Fiscal Spending is not Restraining Enough and Revenue Target Remains Ambitious
The minister of finance, Ken Ofori-Atta, presented to parliament the budget statement and economic policy of the government of Ghana for the 2023 financial year on 24th November 2022. Given the challenges in the past year, we expected the 2023 budget statement to be prudent in public spending and conservative with revenue estimates. However, the […]
