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Bank of Ghana orders 250bp hike

Central bank moves meeting a week earlier to combat high inflation and a weak currency

Bank of Ghana

The Bank of Ghana’s monetary policy committee put up its benchmark rate by 250 basis points on March 21, bringing it to 17%.

The central bank cited rapidly increasing inflation in its statement. Headline inflation reached 15.7% at the end of February. Year-on-year core inflation rose from 11.8% in December to 15.4% in February.

The hike was larger than many analysts had expected. A Reuters poll had forecast a 100bp increase.

The central bank maintains an 8% inflation target, within a corridor

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