ACCRA, March 18 (Xinhua) -- Ghana's central bank on Wednesday cut its benchmark interest rate by 150 basis points to 14 percent amid ongoing geopolitical tensions.
Bank of Ghana Governor Johnson Asiama said during a Monetary Policy Committee (MPC) press briefing that the rising geopolitical tension in the Middle East has deepened uncertainty in the external sector and could push up crude oil prices.
"The favorable domestic macroeconomic conditions and the high prevailing real interest rates provide scope to ease the policy rate further," the governor said.
Despite the global tension, the governor said the MPC expects headline inflation to remain broadly anchored in the medium term as the central bank continues to observe the trends for the necessary action.
He noted that inflation has declined faster with expectations well anchored to remain within the medium-term target of between 6 percent and 10 percent amid significantly improved macroeconomic conditions.
In February, headline inflation declined to 3.3 percent, marking the 14th consecutive decrease in inflation from last January.
