Ghana surprises markets with policy rate hike to 22 pct

 The Bank of Ghana unexpectedly raised its main policy rate by 100 basis points to 22.0 percent on Wednesday to offset the risk of inflation.


Governor Henry Kofi Wampah has raised rates gradually over two years in a bid to curb inflation while maintaining growth as the macro-economic position has deteriorated in a country that saw years of high growth through exports of gold, oil and cocoa.

Ghana began an International Monetary Fund aid program in April to restore balance to an economy hit by a high deficit, a debt-to-GDP level at 65.3 percent at the end of March and a currency Wampah said fell 17.2 percent in the year to May 8.

Read more here