Ghana’s borrowing costs plunge as inflation eases sharply – World Bank

In its 10th Ghana Economic Update, the World Bank said the dramatic easing of inflation created room for the Bank of Ghana to embark on a substantial monetary policy easing programme.

The government responded with a temporary fuel price relief measure to cushion consumers and businesses, but the World Bank warned that the recent inflation rebound demonstrates the need to protect the gains made during the country’s sharp disinflation episode.

Ghana’s rapid return to price stability has significantly improved the cost of borrowing, with average lending rates falling by more than 11 percentage points within a year, the World Bank has reported.