Single Digit Inflation: Gov’t To Place Cap On Interest Rate

President John Mahama says government may place a cap on interest rate if plans to secure a single digit inflation next year fails.

Ghana last recorded single digit inflation in January 2013, recording 8.8 percent. Inflation for July 2016 was 16.7 percent.

The President who gave the hint at the 15th edition of the Ghana Club 100 said a further decline in inflation will prevent government from placing a cap on the rising interest rate.

“Inflation has begun to fall and it is our expectation that we will end the year at about 14% and achieve single digit next year.

“It is my hope that interest rate will follow suit and begin declining. I guess this will prevent me from legislating a cap on interest rate like Kenya has just done,” he said.

Meanwhile, Newmont Golden Ridge Limited was adjudged the best company at the 15th edition of the Ghana Club 100 awards. Goil placed second. Golden Star Resources, Total Petroleum Ghana and Ecobank Ghana followed in the third, fourth and fifth positions respectively. uniBank, Zenith Bank Ghana, Newmont Ghana Gold, Ramel Business Services, Cal Bank Ghana placed sixth, seventh, eighth, ninth and tenth respectively.

Mr Mahama said he is hopeful that businesses will soon start recording huge returns because the two major challenges that befell them in the past two years have been resolved.

According to him, businesses are currently enjoying stable power supply and also, the fuel deregulation exercise has allowed for competitive pricing of fuel for the manufacturing sector. The move, in his view, will help businesses properly plan their operations without the fear of unexpected shocks.