Wednesday, May 22, 2013

Do You Think They Might Have a Little Price Inflation in Ghana?

Ghana's central bank raised its prime interest rate by one percentage point to 16%, today.

The official price inflation rate is 10%, but with interest rates at 16%, my guess price inflation is closer to 20%.

But Central Bank Governor Henry Kofi Wampah sure sounds like Bernanke. He has the wording down.

"On balance, the committee held the view that the risks to the inflation outlook were elevated and outweighed the risks to growth," he told a news conference following the rate hike increase.

Is this what Bernanke, or his successor, is going to sound like when serious price inflation hits the US?

1 comment:

  1. So, interest rates there are at 16%??? sounds like they're closer to reality than we are.

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