Central Banks

Ghana Hikes Rate More Than Expected to Rein In 53% Inflation

  • Hike aimed at driving inflation back to single digits: Addison
  • Inflation is five times the 10% ceiling of the MPC’s target

The Makola district of Accra, Ghana.

Photographer: Ernest Ankomah/Bloomberg
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Ghana’s central bank lifted its key interest rate by more than expected — extendingBloomberg Terminal its steepest phase of monetary tightening — to ensure inflation decelerates at a faster pace.

The monetary policy committee raised the key rate by 150 basis points to 29.5%, Governor Ernest Addison told reporters in Accra, the capital, on Monday. None of the nine economists in a Bloomberg survey forecast an increase of that size.