Ghana central bank raises its main policy rate to 21 pct

Ghana's central bank raised its main interest rate to 21 percent from 19 percent on Wednesday in the face of high inflation and fiscal pressures including weak revenue performance and rising debt-servicing costs.

The West African economy has grown rapidly in the last few years thanks to its exports of oil, cocoa and gold and its political stability.

But the government faces fiscal problems including a high budget deficit, rising inflation and a currency the central bank said fell 31.2 percent in the first 10 months of the year.

The government is holding talks with the International Monetary Fund aimed at securing a financial assistance programme to restore fiscal balance and restructure the economy.