Interest rates continue to surge ahead of the expected hike in the policy rate of the Bank of Ghana from the current 17%.
This is expected to increase the cost of doing business in the country further, due to the rising cost of credit.
With inflation above 23%, it is expected that the managers of the monetary economy will increase the policy rate to reduce money supply and as a result slowdown the rising prices of goods and services.
Interest rates on the short term financial instruments have been going up every week to make up for the liquidity shortfall and the under-subscription of Treasury bills sale so far this year.
They are expected to go beyond 23% anytime soon.
In the just ended T-bills auctioning, the 91-day and 182-day Treasury bills went up by 0.42% respectively to 18.22% and 19.26%. The one-year bill also increased by 1.07% percent to 21.72% to entice investors.
Nevertheless, the sale of Treasury bills by government once again failed to meet its target.
The shortfall was a little above ¢712 million, approximately 37% undersubscribed.
Chunk of the short term instruments purchased was the 91-day T-bills in which ¢1.031 billion was bought by the investors, largely commercial banks.
Securities | Bids Tendered (GH¢) | Bids Accepted (GH¢) | Interest rate |
91 Day Bill | 1.031billion | 1.031billion | 18.226% |
182 Day Bill | 128.47 million | 128.47 million | 19.262% |
364 Day Bill | 88.81 million | 88.81 million | 21.272% |
Total | 1.248 billion | 1.248 billion | |
Target | 1.961 billion |
Latest Stories
-
61 new architects acquire state license to practice in Ghana
9 mins -
Masloc CEO honoured as capacity building Shero of the Year
17 mins -
MPs’ Repeated Attempts to Sue the Speaker: Unintended Consequences for the 2024 Elections?
21 mins -
Today’s front pages: Tuesday, November 5, 2024
31 mins -
Galamsey: Investigation into attack on Joy News’ Erastus Asare and colleagues already growing cold
1 hour -
Mahama promises construction of stadia in all 16 regions if elected
1 hour -
Dampare has transformed Police training school – Bawumia
1 hour -
America braced as two stark visions collide on election day
1 hour -
NAPO urges Ghanaians to support NPP’s vision for national development
2 hours -
About 95% of PWDs in Obuasi have source of livelihood – MCE
2 hours -
Immigration Service intercepts 54 gallons of fuel
2 hours -
Election 2024: Roman Fada selected as flagbearer for Ghana Freedom Party
2 hours -
Bawumia to launch Ghana’s credit scoring system on Nov. 7
2 hours -
Alan to combat galamsey with strategic youth-centred business model
2 hours -
Agona Swedru chiefs commit to ending child marriage within their jurisdiction
2 hours