The Bank of Ghana left its benchmark interest rate steady at 16% during its November meeting, against market expectations of a 25 bps cut. The decision was mostly a result of proposal to rise the budget deficit to 4.7% in 2020 from 4.5% in 2019 which would threaten economic growth and inflation outlook. Policymakers noted that headline inflation ticked up to 7.7% in October but remained low and below the mid-point of the banks's target band of 6-10%; it is projected to stay within the medium-term target of 8±2% over the forecast horizon. Meantime, indicators of economic activity pointed to strong performance, with GDP growth projected at 7% by the end of 2019, amid expectations of higher mining output, continued implementation of growth-oriented government projects and private sector credit growth. Interest Rate in Ghana averaged 17.94 percent from 2002 until 2019, reaching an all time high of 27.50 percent in March of 2003 and a record low of 12.50 percent in December of 2006. source: Bank of Ghana
Interest Rate in Ghana is expected to be 15.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Ghana to stand at 15.00 in 12 months time. In the long-term, the Ghana Interest Rate is projected to trend around 14.50 percent in 2020, according to our econometric models.