‘Baffling’ Inflation Tests Ghana Policy Making, Addison Says

  • Central banker reckons inflation at 23.6% in April has peaked
  • Addison doesn’t see GDP growth slowing after 5.4% expansion

Ernest Addison

Photographer: Simon Dawson/Bloomberg
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Surging prices are posing a challenge to Ghanaian policy makers who prefer to have a key lending rate above headline inflation.

The Bank of Ghana already increased the benchmark rate to a three-year high of 17% at its last meeting, pushing the gauge above headline inflation at the time. The most recent data put inflation at 23.6%, leaving policy makers in a tight spot as they prepare to announce their latest stance on May 23.