Ghana’s interest rate of 27.34% (91-day Treasury bill) in the money market ranks it the highest among 11 top Sub-Saharan African countries.
This has consequently pushed lending rates high at over 30% on the average, and thus putting the country in the number one position with the highest cost of loans in the region.
Yields have been on the rise across the Treasury bill curve, with the 91- day going for 27.34% and the 364-day selling at 28.83%.
But this comes as a cost as lending rates continue to surge.
Businesses and households will therefore have to pay more on loans to finance their operations and personnel expenses. This will consequently increase the cost of doing business and living.
The difficult economic environment in the country has come as a result of the rising inflation and the downgrade of the country’s credit rate which poses an upside risk to the yields.
Analysts say investors would continue to hold out for higher yields to cover the inflation-induced losses. This will obviously keep interest rates and lending rates the highest in Sub-Saharan Africa.
Treasury surpasses auction target for nine successive weeks
The Treasury surpassed its auction target for nine successive weeks.
The Treasury surpassed its auction target at last week’s T-Bill auction with a target coverage ratio of 1.30 and excess uptakes addressing shortfalls in previous auctions.
Total uptake was ¢1.839 billion from an aggregate amount tendered of ¢1.862 billion.
Yields continue to rise as investors priced in the rising inflation, at 31.7% in July 2022, to mitigate losses.
Meanwhile, Nigeria has the lowest interest rate of 2.50% in the region.
COUNTRIES WITH HIGHEST INTEREST RATE (91-Day T-Bill)
|COUNTRY||INTEREST RATE (%)||RANKING|
Source: Ghana News