Small Rate Hike, Will It Be Enough?

BMI View: The Bank of Ghana's decision to hike rates by just 50 basis points was predicated on the monetary policy committee's view that the currency is stabilising and weakness in the global economy poses downside risks to domestic economic growth. While we agree with the latter point, we remain cautious with regard to the cedi and hold to our view for further rate hikes unless the depreciatory trend is broken.

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