Ghana Central Bank holds rates, eyes recovery from pandemic slump

GHANA’S central bank has kept its interest rate unchanged at 14.5% as it eyes recovery from a pandemic-induced economic slump, its governor Ernest Addison has announced.

Ghana has had one of Sub-Saharan Africa’s fastest-growing economies in the past few years, but a slowdown because of the new coronavirus is expected to cap growth at between 2-2.5% this year, down from 6.5% in 2019.

Addison said there were nevertheless signs that things are picking up and that inflation should return to the bank’s medium-term target of around 8% by the second quarter of 2021.

“Leading indicators of economic activity point to recovery,” he told a news conference. – Thomson Reuters Foundation.