The Global Head of Financial Markets for Standard Chartered Bank, Jonathan Paul is predicting a substantial reduction in the rate of inflation for Ghana from early next year.

Ghana’s inflation rate for April this year stands at 18.7 percent from a 19.2 percent in the previous month, adversely impacting the cost of goods and services.

But speaking with Joy Business Mr. Paul said the current hike in the rate is only short term.

"The debt needs to be brought under control and that is part of the policy that the IMF had. Part of that is to bring down the amount of debt to GDP and also the cost of the debt.

"Once the Central Bank moves clearly to inflation targeting then that will create room for local interest rates to come down and that will potentially significantly reduced the cost of debt in the local economy which I think is probably in cedis more than what the government pays in dollars in the offshore market. Because that is affecting the people who run business, the cost of mortgage and borrowing," Paul added.