Bank holds rates on inflation outlook

GHANA’S central bank held its benchmark policy rate at 26 percent yesterday as expected and said inflation should come down towards government targets faster than expected. The bank’s decision to hold the rate for a fifth successive time was in line with steps taken by authorities to stabilise the macroeconomy of the country and reduce inflation, which rose slightly to 16.9 percent last month. “The committee noted the moderation in headline inflation since the July meeting on the back of continued cedi stability, easing inflation pressures and tight credit conditions,” governor Abdul-Nashiru Issahaku told a news conference at the end of a monetary policy committee review meeting. Ghana signed a three-year aid programme in April last year with the International Monetary Fund to restore fiscal balance to an economy dogged by deficits, public debt and high interest rates with inflation above the government’s 2016 target of 11 percent. – Reuters