Ghana: Ghana Increases Lending Rate to 22% at Emergency Meeting

Ghana’s apex bank raised its primary lending rate by 300 basis points to 22% at an “emergency” meeting called to address the economy’s rapid deterioration. The country’s macroeconomic condition has been worsened by a combination of high inflation and debt – local and external debt.

The bank announced the emergency meeting just three weeks after its monetary policy committee (MPC) held the rate at 19% and said it was pausing the observe the impact of a series of record-breaking hikes.

The next meeting was not scheduled until the end of September. But Ghana’s cedi currency has continued its steep decline since the July MPC meeting, and consumer inflation has risen further to 31.7% annually in July 2022, its highest since late 2003.