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ACCRA, Sept 25 (Reuters) - Ghana’s central bank ended a run of rate cuts by keeping its benchmark unchanged at 21 percent on Monday, citing global economic uncertainties and threats to consumer price stability.
The hold - not expected by analysts - should moderate price conditions toward the bank’s medium term inflation target of 8 percent plus or minus 2 percent in 2018, governor Ernest Addison told a news conference in Accra. Consumer inflation rose to 12.3 percent in August from 11.9 percent in July. Fuel prices also went up nearly 8 percent in September and could post risks to inflation in the coming months, analysts said.
“The committee decided it was time to pause the easing cycle in view of emerging risks to the inflation outlook, while remaining vigilant and committed to take the necessary policy actions should these initial signs of underlying pressures persist,” said Addison. Ghana, which exports cocoa, gold and oil, is following a $918-million credit programme with the International Monetary Fund to restore fiscal balance to an economy dogged by deficits and high public debt. (Reporting by Kwasi Kpodo; Editing by Nellie Peyton and Toby Chopra)