The decision by the Bank of Ghana to aggressively hike rates today, combined with the FX restrictions announced yesterday, should bring some temporary relief to the cedi. However, a lack of progress in tackling the country’s enormous twin budget and current account deficits means the currency is likely to come under renewed pressure over the course of 2014. As such, we think rates will be raised further, perhaps to 20.00% by the end of this year.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services