ACCRA (Reuters) – Ghana’s central bank raised its main policy rate to 21 percent on Wednesday from 19 percent when faced with monetary pressures including weak income performance and also increasing debt service prices, banking Governor Henry Kofi Wampah claimed.

The nation’s economy has actually increased rapidly as a result of its exports of oil, cacao and gold yet the federal government is struggling to secure its economic situation in the face of a stubbornly high national debt and a currency that has fallen sharply this year.

The banking revised its passion rate corridor to 300 basis points around the policy rate, below around 500 basis factors and kept its reverse repo rate at 24 percent and repo rate at 18 percent, Wampah stated.

Annual customer cost inflation increased to a fresh four-year high of 16.9 percent in October from 16.5 percent the previous month, the nation’s statistics workplace stated.

The number leaves rising cost of living over the federal government’s full-year target of 13 percent, plus or minus 2 percent. The federal government modified the target in July from an earlier 9.5 percent.

Rising cost of living rate will certainly stay outside its target band in the brief term but will alleviate towards 8 percent plus or minus 2 percent by the very first fifty percent of 2016, Wampah said.Finance Spending plan, Tax obligation & Economic situation