Ghana keeps rates on hold as IMF talks open

The Ghanaian authorities’ turn to the IMF and the subsequent rally in the cedi allowed the central bank to keep interest rates on hold today, in spite of above target inflation. Looking ahead, we think inflation will rise further over the coming months, prompting a hike in interest rates before the end of the year. But irrespective of whether rates are hiked further in the near-term, the bigger picture is that monetary conditions are likely to remain tight over the coming years.