Ghana’s Inflation Slows to 28-Month Low, Opening Door for Further Rate Cuts

Ghana’s annual inflation rate slowed to its lowest point in 28 months in July, creating space for the central bank to potentially ease monetary policy further this year, Bloomberg reports.

Consumer prices rose by 20.9% in July, marking the slowest pace since March 2022, compared to 22.8% in June, according to Government Statistician Samuel Kobina Annim. This figure is lower than the median estimate of 21.5% from four economists surveyed by Bloomberg.

Following a surprise interest-rate cut in January, the Bank of Ghana has maintained the key rate at 29%. However, the weakening cedi, Ghana’s local currency, has cast a shadow on the outlook for consumer-price growth.

The Bank of Ghana is scheduled to announce its next interest-rate decision on September 30. The recent decline in inflation suggests that a further easing of monetary policy could be on the horizon.