The International Monetary Fund is forecasting an end-year Inflation rate of 8.7% for Ghana.
That signals a likely ease in the cost of loans in the coming months.
This is consistent with Fitch Solutions 8.5% forecast and it comes at a time when the Monetary Policy Committee of the Bank of Ghana is holding its 98th meeting to review developments in the economy.
There are high expectations for a slight drop in lending rates for the next three months to help boost business and consumer spending.
Inflation which is an increase in the overall prices of goods and services in an economy is an important determinant in the cost of borrowing; and therefore the Bank of Ghana views it as crucial in pricing its base lending rate.
The expected lower inflation will boost the economy, hence encouraging savings, investments, and also deepen the nation’s international competitiveness.
It will also facilitate the cost of doing business for companies and as a result increase their profit margins.
An increase in the bottom lines of enterprises will also trigger expansion and job creation. Coupled with other economic indicators, a lower inflation will stimulate stock market activities and shore up share prices.
Inflation remained within the 9% to 10% bracket for the greater part of last year. According to the Ghana Statistical Service, Financial Services; Recreation, Sports, Culture and Education Services inflation remained very low in 2020.
Inflation hovered around 9-10% in 2020
Inflation remained within the 9 and 10% bracket for the greater part of last year.
According to the Ghana Statistical Service, Financial Services (1.7%); Recreation, Sports and Culture (0.2%) and Education Services (4.9%) inflation remained very low in 2020.
Inflation actually ended the year 2020 at a rate of 10.4%, a marginal increase over that of November 2020.
Latest Stories
-
Tanzania denies abuse reports as World Bank halts funds
3 mins -
2024 polls: The person I defeated twice can’t succeed me – Akufo-Addo
10 mins -
NBA: Miami Heat beat Boston Celtics to even series
19 mins -
Two sentenced for stealing over 1,000 bags of rice
24 mins -
Zulu monarchy in row over king’s praise singer
27 mins -
Xavi to remain as Barcelona coach until at least June 2025
29 mins -
2Pac’s estate threatens to sue Drake over use of late rapper’s AI-generated voice
31 mins -
Yaw Nsarkoh: The President’s letter on the KPMG (SML) Report
31 mins -
Manasseh’s praise and criticism of Akufo-Addo’s action on the SML scandal
36 mins -
KPMG’s report confirms we haven’t been paid $100m – SML
41 mins -
SML refutes KPMG’s claim of GH¢1bn payment, says it’s inaccurate
47 mins -
Mahama’s speech at Prof Opoku-Agyemang’s unveiling as his running-mate
55 mins -
Asiedu Nketia’s full speech at official unveiling of Prof. Naana Jane Opoku-Agyemang as running-mate
1 hour -
We are committed to helping build a better Ghana – SML
1 hour -
‘They don’t even pick up my calls’ – African Games gold medalist laments over unpaid bonuses
1 hour