Ghana raises rates to combat record inflation

The Bank of Ghana raised rates by a full percentage point on Monday as spiralling oil and food prices drove inflation to a three-year high of 18.4%.

The policy rate was lifted to 17%, the third hike this year.

The spike in inflation from 16.9% in May is especially worrying and more than double the central bank's original target band of 6-8%.

"Monetary policy needs to be vigilant to avoid a build-up in inflation expectations," said Paul Acquah, the governor, at a news conference after the design