Ghana projected to reach debt deal with external creditors in Q2 2024 – Fitch Solutions

UK-based firm, Fitch Solutions has projected that Ghana will likely reach a debt deal with its external credit in the second quarter of 2024.

The firm however believes that the lengthy time frame should provide the necessary tailwinds to the exchange rate and further limit imported price pressures.

“Indeed, we believe that Ghana will reach a debt deal with its external creditors in H224 [half-year 2024], which should provide tailwinds to the exchange rate and further limit imported price pressures,” the UK-based firm noted.

Fitch Solutions further said Ghana’s Gross Domestic Product growth is expected to remain below trend on the back of fiscal consolidation under the current IMF-supported programme.

As part of efforts to stimulate economic activity in Ghana, Fitch Solutions said the Bank of Ghana will likely adopt lower interest rates while predicting the Central Bank would cut its monetary policy rate by 600 basis points to 22 percent by the end of 2024.

It explained the move can be attributed to the downward trend in inflation pressures from the fourth quarter of 2023.

“In 2024, we expect that the BoG will continue easing monetary policy, cutting the benchmark interest rate by 600bps to 22.00% by year-end,” the firm said.

MA/NOQ

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