The Bank of Ghana kept its prime lending rate steady at 16% at its April 1st 2019 meeting, as widely expected. Policymakers said that despite the uptick in annual inflation to 9.2% in February 2019 from 9.0% in January, it stands within the medium term target band and inflation expectations are well-anchored. The bank added that economic activity picked up to 3.2% in January 2019 from 2.4% in December. Moreover, the economy is projected to expand by 5.6% in 2018 and 7.6% in 2019, with the preparation of new oil wells including those of AKER ENERGY, the re-opening of operations at the Obuasi mine, and the implementation of growth-oriented government initiatives as main drivers of growth. However, it was noted the sustained weakness of the cedi against the major international currencies in February and March 2019. In January, the surprise rate cut led the cedi to weaken sharply against the dollar to close an all-time low. Interest Rate in Ghana averaged 18.04 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.
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 14.75 in 12 months time. In the long-term, the Ghana Interest Rate is projected to trend around 14.75 percent in 2020, according to our econometric models.