Ghana, Zambia Central Banks Hold Interest Rates Amid Persistent Inflation

Ghana's central bank has kept its main interest rate steady at 28%, as consumer inflation eased to 21.2% in April but remains significantly above its target range of 8% plus or minus 2 percentage points. Governor Johnson Asiama noted that while inflation outlook is improving, risks from food supply constraints and external shocks persist amid the country's ongoing economic recovery. Similarly, Zambia's central bank held its benchmark interest rate at 14.5%, following two previous hikes, with April inflation steady at 16.5%, still above the 6%-8% target. Zambia's central bank governor, Denny Kalyalya, expressed optimism that inflation will decline faster than earlier projections, expecting an average of 13.5% for 2025, down from a prior forecast of 14.6%. Zambia also revised its 2024 economic growth forecast upward to 4% from 1.2%, reflecting better-than-expected recovery after a drought. Both countries face inflation challenges but show cautious optimism for improving economic conditions.