Inflation may outperform IMF’s 29.4% target – Report

IC Research has projected that Ghana’s year-on-year inflation is likely to outperform the targets that were set by the International Monetary Fund under the PC-PEG programme.

Ghana’s inflation for November reduced to 26.4% from 35.2% in October.

According to a myjoyonline.com report, the research pointed out that the November 2023 inflation (26.4%) print pulls headline inflation symmetrically within the 27.4% inner band and the 25.4% outer band of the lower limit under the IMF programme’s Monetary Policy Consultation Clause.

“Against this backdrop, we reiterate our view that the authorities [government] will outperform the IMF’s end-2023 central target of 29.4% with a firm tilt towards the outer band of the lower limit.”

“Reassuringly, our updated CPI forecast for end-2023 points to the potential to outperform even the outer band of 25.4% with a projected landing zone of 24.2% in December 2023,” the report said.

IC Research continued “Our impact assessment revealed that this monetary decision has effectively mopped up ¢4.6 billion from the interbank market as banks’ holding of Bank of Ghana bills declined to ¢28.1 billion as of December 13, 2023 (versus ¢32.6bn pre-Monetary Policy Committee).”

SSD/OGB