Inflation set to rise after BoG’s monetary policy meeting, Cedi ranks 149th out of 150
According to Bloomberg, in a recent emergency central bank meeting to decide on borrowing costs, it was revealed that the inflation of the country is set rise again in the coming months as the cedi is today classified as the worst-performing currency across the globe.
As the monetary policy committee met, a new set of data showed that the country’s inflation may accelerate further in the coming months.
The emergency meeting comes after the regulator, Public Utilities and Regulatory Commission (PURC) announced on Monday that water and electricity tariffs will rise 21.55% and 27.15% respectively starting September. “Those increases will add to the deteriorating inflation outlook in Ghana”, said Absa Group Limited analyst, Ridle Markus.
“Ghana’s producer prices in July jumped 41.2%, the fastest pace in eight years. The worsening economic situation may spur the central bank to raise its policy rate by 200 basis points to 21% Wednesday, according to predictions by economists at Goldman Sachs Group Inc” Bloomberg stated.
There is a “meaningful upside risk to this forecast, given the extent of FX and domestic financing pressures, Goldman Sachs economists, Bojosi Morule and Andrew Matheny, said in a note to clients on Tuesday,” according to Bloomberg.
Bloomberg tracked the performance of 150 currencies in the world and the Cedi placed second from bottom in terms of performance since the beginning of the year 2022, only better than Sri Lanka’s rupee. The central bank is the second in sub-Saharan Africa after the Bank of Uganda to hold an emergency meeting since Russia’s war with Ukraine erupted in February.
By: Agaatorne Douglas Asaah | myactiveonline.com
