Bank of Ghana to consider Islamic banking in Ghana
The Bank of Ghana (BoG) has hinted it may later consider introducing Islamic Banking in Ghana if the prospects are positive.
The Bank of Ghana (BoG) has hinted it may later consider introducing Islamic Banking in Ghana if the prospects are positive.
The rate-setting committee of the Bank of Ghana said on Wednesday it held its prime interest rate unchanged at 15 percent, marking its third consecutive decision to hold the rate steady since June.
Ghana's annual inflation dipped to 9.4 percent in September from 9.5 percent a month before as the harvest got underway and moderated food prices, the statistical office said on Wednesday.
A stable economic outlook in the West African oil, cocoa, and gold producer nation has led analysts to predict the central bank will hold its prime interest rate steady at 15 percent until at least the end of the year.
Acting government statistician Philomena Nyarko said lower prices for local staples linked to harvesting accounted for the marginal decline in September. She said general price levels slipped by 1.5 percent month-to-month and projected the trend was likely to continue.
"We can say that we will have a lower month-on-month inflation next month due to the impact of the harvest season," Nyarko said.
The data showed food inflation stood at 4.4 percent last month while non-food inflation was 12.4 percent, driven mainly by transport costs.
Inflation rose throughout much of the year as Ghana's cedi currency plunged versus the dollar in the first half of 2012 but steadied in August as the local currency began to rebound.
"This first softening of inflation since February likely reflects the almost 2 percent appreciation of the cedi against the dollar in September," said Yvonne Mhango of Renaissance Capital. "We think this implies the policy rate is likely to remain flat at 15 percent until year-end 2012."
Ghana's rate-setting committee kept its prime rate unchanged in September, citing a balanced inflation and growth outlook.
Nii Ampa-Sowah of Accra-based Databank Group said that while the marginal fall in inflation had been expected, seasonal price pressures would pick up towards year-end.
"In our view pricing pressures will pick up as corporate demand for hard currency increases, along with the likely rise in food prices which is typical in the last quarter of the year," he said.
Source: Reuters
The Bank of Ghana will issue 500 million cedis worth of three-year government bonds on October 25 to restructure short-term debt, Finance Minister Kwabena Duffuor said on Monday.
"It's purely debt management and is targeted at restructuring our short-dated instruments such as the 91-day and 180-day bills," Duffuor told Reuters.
The West African cocoa, gold and oil exporter has issued a series of three-year and five-year bonds this year to raise funds for infrastructure for debt management.
The bonds, which have been heavily oversubscribed, were also part of efforts by the central bank to mop up liquidity in support of the local cedi currency, under pressure from local dollar demand.
The yield on Ghana's short-term instruments, including its 91-day bill, is around 23 percent - almost at the same level as the yield for three-year bonds.
"As it is now, we're facing a flat yield curve and need to fix that effectively," Duffuor said, adding he expected the upcoming bond to be oversubscribed.
Source: Reuters