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Bank of Ghana Raises Interest Rates to 18%

In a defensive move, Ghana, one of the top performing economies in Africa, raised their policy rate by 200 bps to  strengthen the cedi currency which has lost over 23% against the USD in the past year.  The Bank of Ghana was in part influenced by the recent volatility in emerging markets. 

The increase in the main policy rate was driven by high inflation, weak domestic demand, and higher imports indexed in dollars. Ghana is just like all other emerging economies, trying everything to weather the bruising sell-off occurring in the market.  

(Image source: ghanalife.tumblr.com)