Full List Of African Countries With Lowest Interest Rates

New data shows that Ghana now has the highest interest rate among top 11 African countries.

As indicated by Databank Weekly Fixed Income Update, the country’s 18.23% and 19.26% rates for the 91-day and 182-day Treasury charges separately are the highest on the continent.

By the way, the Treasury bill rates in Ghana are lower than the inflation rate of 23.6%.

The steady speed of inflation has extended real profits from short-term securities further down into the negative region. So if you have purchased Treasury bills as of late, the returns from your investment is negative.

This present circumstance will propel the Bank of Ghana to increase its Monetary Policy Rate which now remains at 17% further, to assist with wiping up overabundance liquidity available for use, and subsequently stop the increasing inflation rate.

As indicated by a Databank Research, Real returns from fixed-income securities are discouraged with the high inflation profile, consistently sabotaging the Treasury’s supporting activities. The outfit note that short-term interest rates are skewed, bringing about regrettable real yields, which could incite the Monetary Policy Committee (MPC) to act in the week ahead.

“However, Ghana cedi liquidity levels are already tight on the interbank market, and a further tightening of the MPR could stifle economic growth. So, while we maintain an additional 200 basis points (2%) hike in the policy rate in 2022, we expect the MPC to exercise restraint in May 2022, deferring a potential 100 basis points (1%) hike in MPR to July 2022”, as per the Bank of Ghana.

“Destination Ghana” Will Be An Attraction To The World

The rising interest rates are expected to increase the cost of borrowing and production cost per unit of most businesses.

At the same time, government will borrow at a higher cost on the financial markets.

Meanwhile, Egypt follows Ghana closely with a 91-day Treasury bill rate of 13.67%.

Its currency – the Egyptian Pound – has been recording rapid depreciation to the dollar.

Nigeria has the lowest interest rate of 1.74% among the top 11 African countries.

Countries with lowest interest rates: