Inflation crises in Ghana spurs an aggressive move from the Country’s central bank

<span>Pedestrians walk in front of Ghana's central bank building in Accra, Ghana, November 16, 2015. REUTERS/Francis Kokoroko</span>, <p>To combat the skyrocketing level of inflation, Ghana's Central Bank raised key interest rates by 30%. This hike represents a 0.5% rise. The increase was declared at the conclusion of the apex bank’s monetary policy meeting on Monday.</p>, <p>Financial analyst Richmond Frimpong spoke to the BBC, noting that the move is an effective way of tackling some of the country’s current economic crises, he said “A hike in rates is the best way to go in the midst of the crisis.”</p>, <p>Additionally, American news agency, Reuters reported that Ghana's central bank increased its main interest rate by another 50 basis points to 30.0% while urging stricter fiscal policy to assist reduce the country's persistently high inflation.</p>, <p>Ernest Addison, the governor of Ghana's central bank, stated on Monday that the most recent hike in interest rates was necessary to keep a disinflation trend from veering off course.</p>, <p>After decreasing for four months in a row from a more than two-decade high of 54.1% year on year in December, consumer inflation (GHCPIY=ECI) slightly increased in May and June. "You will continue to see policy tightening until we get inflation where we want it to be," Addison told a news conference.</p>, <p>"But we also cannot look at it in isolation, because monetary policy alone cannot deliver that low inflation. We expect that, you know, the fiscal side of the work would also have to come in, ... not to have these persistent increases in the policy rate," Addison added.</p>, <p>The CBN governor's remarks on the need for fiscal consolidation come as Ghana's Finance Minister Ken Ofori-Atta prepares to give his mid-term budget review to parliament on Tuesday. The governor stated that the central bank will closely watch inflation figures in the coming months and adjust as appropriate. He was unsure whether Ghana's administration had yet formally engaged with its bilateral c