Bank of Ghana cuts prime interest rate by 100 basis points to 13.5%

Ghana's central bank on Monday cut its main interest rate by 100 basis points to 13.5% from 14.5%, Governor Ernest Addison said during a news conference.

A Reuters poll of 12 analysts had expected the bank to keep the rate unchanged. Addison said consumer inflation in Ghana is expected to remain within the bank's target band of 8% plus or minus 2 percentage points in the next quarter after falling to 8.5% in April due to lower food price inflation.

"Risks to the inflation outlook remain muted in the near-term ...under these circumstances, the (Monetary Policy Committee) decided to lower the monetary policy rate by a hundred basis points to 13.5%," Addison said, adding that the bank will monitor inflationary pressure on rents and transport fares.

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