Ghana has seen rates of interest drop sharply since this yr’s starting, putting it 1st amongst 11 African international locations.
Nonetheless, the West African nation stays second with the best rates of interest on the continent, whereas Egypt remains to be ranked first with the best yields.
For the reason that starting of the yr, the yield on the 91-day invoice has gone down by 3.94 proportion factors to 24.48%.
Equally, that of the 182-day invoice has additionally declined by 3.58 proportion factors to 25.39%.
The declining rates of interest will compel the Financial institution of Ghana to chop its financial coverage price from the present 27%.
The nation with the bottom rates of interest in Africa is Rwanda, with the 91-day pegged at 7.05% and the 182-day at 7.39%.
This means that it has a low-interest price surroundings.
Nigeria nonetheless boasts of a high-interest price surroundings with the yields on 91-day and 182-day payments going for 18.00% and 18.50%, respectively.
Cash Market Charges Broadly Trended Downwards
Based on the Financial institution of Ghana, the 91-day and 182-day Treasury invoice charges declined to 27.73% and 28.43%, respectively, in December 2024, from 29.39% and 31.70% in December 2023.
Equally, the speed on the 364-day instrument declined to 29.95% in December 2024 from 32.97% in December 2023.
Moreover, the Interbank Weighted Common Fee (IWAR) dropped to 27.03% in December 2024 from 30.19% a yr earlier.
This decline contributed to a discount in common lending charges for banks from 33.75% to 30.25% over the identical interval.
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