[2008-07-22]  The Bank of Ghana raised its benchmark prime interest rate by 100
The Bank of Ghana raised its benchmark prime interest rate by 100 basis points to 17 percent, Governor Paul Acquah said.
Some analysts had expected a bigger rise on top of a hefty 175 basis point increase in May.

Annual inflation surged to 18.4% in June, from 16.9% the previous month.

Investment bank Renaissance Capital said last week that had pushed Ghana's real interest rates into negative territory, equating to -240 basis points, and predicted the central bank would raise rates by as much as 250-300 basis points.

Like other countries around the world, Ghana has seen high oil and food prices push up inflation, causing problems for poor people for whom food and transport account for the majority of household spending.


Source: Vibeghana