Ghana's central bank cut its benchmark interest rate for a second time in four months as the cedi recovered from record lows and inflation slowed to the lowest rate in more than three years.The Bank of Ghana reduced the rate to 23.5 percent from 25.5 percent, Governor Abdul Nashiru Issahaku told reporters Monday in the capital, Accra.
Indications that growth is likely to remain significantly below potential and an improved inflation outlook provide "some scope for monetary policy easing," he said.The central bank reduced its key rate in November for the first time since May 2011 even as inflation has remained outside the central bank's target band of 6 percent to 10 percent since at least January 2013.
The meeting will conclude on May 22, 2017 with the announcement of the policy decision. The cedi has recovered from record lows reached earlier this month and gained 8.3 percent since the beginning of March after Finance Minister Ken Ofori-Atta announced plans to narrow the fiscal deficit, which was 8.7 percent of gross domestic product in 2016.
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