interest rate

Interest Rate, Cost Of Borrowing To Come Down Soon – John Kumah
17 Apr

Interest Rate, Cost Of Borrowing To Come Down Soon – John Kumah

wontumionlineBusiness,
Deputy Finance Minister John Kumah has assured that interest rates will come down in the next few months. According to him, the government is putting up measures to ensure that the rates drop further than it has in recent times. “At the moment T-Bill rate in January was at about 35%, today it is below 20%, and we are still forcing it down.” “So that in the end once we tackle inflation and it also comes down, we are now going to see the cost of borrowing coming down within reasonable limits for businesses to have the liquidity to operate,”…
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Interest Rates Hit 33%; Government Misses T-bills Sale By 16%
24 Oct

Interest Rates Hit 33%; Government Misses T-bills Sale By 16%

wontumionlineBusiness,
Interest rates inched up to 33% to reflect surging inflation and the rapid depreciation of the cedi. The increase in interest rates is however lower than the current inflation of 37.2% and the rate of cedi depreciation which is more than 50%. This means the real rate of return of the short-term securities for investors is still negative. Again, the lower yields of the Treasury bills compared to the rates of inflation and the cedi depreciation make it unattractive for investors to purchase the cedi denominated assets Once again, the sale of Treasury bills by government was undersubscribed for the…
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22 Aug

Interest Rate Nears 30%; T-bills Auction Oversubscribed For 10 Weeks Running

wontumionlineBusiness
Interest rates neared 30% as the government Treasury bills auction was oversubscribed for the 10th consecutive week. However, the rising yields come with increased costs for the government as interest expenses may likely go up. Interest rates on the yield curve continued to surge as liquidity increased in the market. However, the yields are lower than the current inflation rate of 31.7% (July 2022). The rising interest rates indicate that government will spend more on interest payments for this year. Whilst the 91-day T-bill went for 27.7%, higher than the previous week’s 27.3% that of the 6-month traded at 29.2%,…
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