On Monday, the central bank of Ghana decided to keep its primary interest rate (GHCBIR=ECI) unchanged at 29.5%. The bank emphasized that the implementation of stringent monetary measures and the maintenance of a relatively stable exchange rate have contributed to a decline in inflation.
The West African nation, known for its production of cocoa, gold, and oil, is currently facing its most severe economic crisis in decades.
Last week, the executive board of the International Monetary Fund (IMF) approved a three-year support program amounting to $3 billion. This program offers a lifeline to the country, with an initial disbursement of approximately $600 million, and holds the potential to pave the way toward resolving the ongoing crisis.
In April, Ghana experienced a fourth consecutive month of decelerating consumer inflation. After peaking at 54.1% in December, the inflation rate dropped to 41.2% year-on-year in April, down from 45.0% in March. This downward trend signifies a notable improvement from the exceptionally high levels observed just a few months ago.
During a press conference, Bank of Ghana Governor Ernest Addison highlighted the noteworthy decrease in headline inflation since the beginning of the year. Additionally, he emphasized that the proportion of items in the Consumer Price Index (CPI) basket experiencing inflation rates exceeding 50% is gradually diminishing.