Interest rates surged on the money market to 31.08% as the government borrowing spree on the domestic market continued.

According to results of treasury bills auction by the Bank of Ghana, the government got ¢3.45 billion, 12.91% lower than the ambitious targeted amount of ¢3.96 billion.

Interest rates in Ghana are ranked the highest in middle-income countries in Africa.

The rates, however, are lower than the inflation of 43%, indicating that the real rate of return on investments is negative.

According to data from the Bank of Ghana, the yield on the 91-day bill increased by 0.61% to 26.70%. That of the 182-day bill reached 27.88%, from 27.59% the previous week.

The one-year bill also inched up by 0.39% to 31.08%.

Meanwhile, demand for the 182-day bill for the first time in several years exceeded the 91-day bill. Investors tendered ¢1.69 billion for the six months bill. All the bids were accepted.

Investors also offered ¢1.63 billion for the 91-day bill in which all the bids were accepted.

Only ¢126.67 million were tendered for the one-year bill.