Interest rates inch up further to 32.5%, bills oversubscribed by GH¢500 million

The government secured GH¢3.09 billion from its latest treasury bill auction held on September 22, 2023.

The results showed that the bills were oversubscribed by GH¢511.14 million away from the set target of GH¢2.585 billion.

However, interest rates have remained high inching up to 32.5%.

Concerns are growing over the increasing rate of interest rates in recent times because the government would have to spend more to fulfill the maturities.

According to the results from the Bank of Ghana, all bids tendered in this week’s auction were not accepted.

But the target was oversubscribed nonetheless.

Analysts have posited that with the high interest rates being recorded, the government could reject the bids and auction at lower rates.

The 91-day and 182-day bills have interest rates of 28.5% and 30.6% respectively.

For the 364-day bills, interest rates have increased to 32.50%.

The 91-day bill saw a total subscription of GH¢2.11 billion, GH¢548.72 billion was accepted from the 182-day bill and GH¢433.28 million was accepted from the 364-day bills.

The government has set its next auction target at GH¢2.570 billion.

SSD/NOQ

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