Interest rates tumbled once again but marginally in line with the disinflation process.

This is coming ahead of the Monetary Policy Committee (MPC) meeting this week.

According to auction results by the Bank of Ghana, the yield on the 91-day bill went down by 10.0 basis points to 25.09%.

Similarly, the 182-day bill declined marginally to 26.94% from the previous week’s 26.99%.

The rate on the 364-day bill also dropped by 4.0 basis points to 27.95%.

Meanwhile, the demand for T-bills eased as government got GH¢3.212 billion from the sale of the short-term instruments.

This was 0.77% oversubscription.

GH¢2.493 billion, representing 77.62% came from the 91-day bill. Indeed, all the bids were accepted.

For the 182-day bill, GH¢636.63 million bids were tendered. The uptake was the same.

The one-year bill also saw GH¢82.19 million of the bids tendered. All the bids were accepted.

Databank Research had earlier pointed out that interest rates will continue to trend downwards in line with falling inflation.

“Our view hinges on a broadly favourable outlook with a decent risk premium spread, comparing the April 2024 annual inflation rate and prevailing T-bills yields”, it said.