Interest Rates Remain Relatively Stable For 3 Straight Weeks Despite Surging Inflation
Interest rates remained relatively the same for the third week in a row, despite the surge in inflation.
The inflation rate soared to 29.8% in June, the highest since 2003, a situation that many thought would have pushed interest rates higher, but that was not the case.
According to the results of the weekly treasury bills, the interest rate on 91-day treasury bills stood at 25.95%, compared to 25.89% recorded a week ago.
That of 182-day Treasury bills was 27.46%, slightly higher than the 26.54% recorded the previous week.
This means that liquidity has improved considerably in the money market, following the announcement by the International Monetary Fund that it will help managers of the Ghanaian economy to strengthen its weak economic fundamentals.
According to the results of the Bank of Ghana auction, the government recorded ¢1.150 billion from the sale of weekly treasury bills, an oversubscription of 23.48%.
He accepted ¢1.088 billion of the offers presented.
The short-term securities sales target was ¢932 million.
However, much of the amount came from 91-day Treasury bills, through which ¢940.17 million was secured. 210.72¢ was mobilized on 182-day Treasury bills
Meanwhile, all eyes will be on the monetary policy of the Bank of Ghana when it begins its quarterly meeting from tomorrow June 20.e2022.
It is unclear whether the MPC will adjust the policy rate upwards or keep the rate from May 2022 at 19%, despite rising inflation
|Securities||Tenders submitted (GH¢)||Bids Accepted (GH¢)||Interest rate|
|91 day invoice||940.17 million||886.24 million||25.95%|
|182 day invoice||210.72 million||202.25 million||27.46%|
|Total||1.150 billion||1.088 billion|