BoG raises Interest Rate to 24.5% to tame soaring inflation

The Central bank has increased its benchmark interest rate by 250 basis points to 24.5 percent.

The hike in rate, the highest in five years seeks to tame the fastest inflation since 2001.

The announcement came on Thursday after an emergency meeting of the bank’s monetary policy committee.

On Banking Sector Performance, the BoG Governor, Dr. Ernest Addison told reporters the Total Deposits increased by 22.5% to GH¢136.7 billion in August 2022 relative to the 21.8% growth recorded in August 2021.

Also Asset quality improved as Non-performing loans ratio reduced to 14.3% Year to date August 2022. The position was 17.3% in August 2021.

Capital Adequacy Ratio stood at 18.1 percent above the regulatory minimum of 13.0

percent. However the ratio is below the 20.7 percent seen in August 2021.

Mobile Money Operations

The total number of transactions increased to 447 million at a value of GH¢87.1 billion in August 2022. This represents a 21.9% increase following the implementation of the E-levy in May 2022 (382 million/ GH¢71.4 billion).

Ghana’s Public Debt hit 402.4 billion Ghana Cedis in July 2022, representing 68% of GDP.