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REFLEX ECO GROUP news list (July 10, 2014 at 10:50 am) – The Bank of Ghana yesterday raised its benchmark interest rate to 19 percent, the highest since 2004.
Ghana’s central bank will reduce its lending rate to banks after stemming a practice where lenders used the regulator’s cash to buy local Treasury bills and profit from the difference. The Bank of Ghana will bring the rate back in line with its rule of the policy rate plus 200 basis points, or two percentage points, Governor Kofi Wampah said.
Yields on Ghana’s 91-day notes jumped this year to 24.09 percent last week, the highest in sub-Saharan Africa, according to data compiled by Bloomberg.
Investors parked cash in the assets as the local currency slid 30 percent in 2014, the world’s worst performance against the dollar, and inflation accelerated for a 10th straight month to 15 percent in June. In April, the Bank of Ghana increased the cash-reserve ratio for banks to 11 percent from nine percent to reduce the amount of cedis on the local market. The currency gained 0.6 percent to 3.3150 per dollar.
Written by Sekinat Odumosu at email@example.com
SOURCE: BLOOMBERG AFRICA