ACCRA, May 23 Reuters Ghana39;s central bank on Monday raised its main interest rate by 200 basis points to 19 to curb inflationary pressures and promote macroeconomic stability, Governor Ernest Addison said.
In March the Bank of Ghana raised its policy rate by 250 basis points to 17 the largest hike in its history to stem runaway inflation in one of West Africa39;s more prosperous nations as the government cut spending to reduce the budget deficit and save a sliding local currency.
But in April the consumer inflation rate in the gold, oil and cocoa producer hit an 18year high of 23.6.
Addison said the total public debt stood at around 78 of gross domestic product.
Capital outflows have entirely offset a 1.3 billion trade surplus gained from a 61 jump in crude oil export revenues in the first quarter.
Addison said that had created an overall balance of payments deficit of 934.5 million in the first quarter compared with 429.9 million in the same period last year.
The committee took the view that it needed to decisively address the current inflationary pressures to reanchor expectations and help foster macroeconomic stability, Addison told a press briefing in the capital Accra.
The rapid depreciation of Ghana39;s cedi has slowed but the currency has still lost over a quarter of its value since the year began.
Although the jump in April inflation was mainly driven by transport costs, prices rose for more than 96 of surveyed items, meaning most Ghanaians are…