Ghana Targets 9.5% Inflation In 2015

Dr. WampahGhana expects inflation to ease to 9.5 per cent, plus or minus two percentage points, by the second half of 2015, central bank governor Dr. Henry Kofi Wampah has predicted on Friday

The country’s inflation reached a four-year high of 15.9 per cent in August according to Statistical Service.

Dr. Wampah told Reuters the inflation rate would fall as the Bank of Ghana maintains its tight monetary policy stance, aided by government stabilisation efforts and a boost in foreign exchange liquidity.

Last week Wednesday, the bank maintained its benchmark interest rate at 19 per cent, saying inflation remained a concern.

“The single digit target of 9.5 per cent remains the target we are working towards and we believe we would recover to that level by the second half of 2015,” Wampah said.

The government in July raised its end of year inflation target to 13 per cent, plus or minus two percentage points, from its initial target of 9.5 per cent with the same cushion.

Ghana started talks last week Tuesday with the International Monetary Fund for an assistance programme to help fix its fiscal imbalances, which include a high budget deficit, rising inflation and a currency that has fallen sharply this year.

Ghana has recorded consistently high economic growth rates in recent years on the back of its exports of gold, oil and cocoa.

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