By Nicholas Bariyo


KAMPALA Uganda---Ghana's central bank cut its key lending rate by 100 basis points to 29%, citing easing inflation in Africa's second largest cocoa producer.

Inflation eased to 23.2% in December, from a peak of 54.1% in the same month in 2022, Bank of Ghana Governor Ernest Addison said in a statement on Monday.

"The latest forecast suggests that the disinflation process will continue, and headline inflation is expected to ease to around 13-17 percent by the end of 2024," Addison said, adding that the bank sees "the need to maintain a strong policy stance to consolidate the disinflation gains".

It is the first rate cut since 2021, as the West African nation that also exports oil and gold struggles to steady its economy battered by soaring external debt. Since 2022, Ghana has struggled to service its external debt amid rising global interest rates, a strong dollar and the economic fallout from Russia's invasion of Ukraine.

Earlier this month, Ghana said it reached a deal with its official creditors to restructure some $5.4 billion of loans.


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(END) Dow Jones Newswires

01-29-24 0928ET