Databank CEO bemoans bond buyers’ increased appetite for high interest rates

CEO of the Databank Group, Kojo Addae-Mensah, has bemoaned the overreaction of Ghanaian investors on the bonds market to high levels of inflation.

The national inflation rate has risen to 23.6% as of April this year, from 8.5% in April of last year. The current rate is almost thrice the Central Bank’s 2022 target of 8%.

While the central bank has raised its policy rate to 19% to help check inflation, many investors are expected to demand higher rates to lend to the government going forward due to the high inflation rate.

CEO of the Databank Group, Kojo Addae-Mensah, has bemoaned the overreaction of Ghanaian investors on the bonds market to high levels of inflation.

The national inflation rate has risen to 23.6% as of April this year, from 8.5% in April of last year. The current rate is almost thrice the Central Bank’s 2022 target of 8%.

While the central bank has raised its policy rate to 19% to help check inflation, many investors are expected to demand higher rates to lend to the government going forward due to the high inflation rate.

CEO of the Databank Group, Kojo Addae-Mensah, has bemoaned the overreaction of Ghanaian investors on the bonds market to high levels of inflation.

The national inflation rate has risen to 23.6% as of April this year, from 8.5% in April of last year. The current rate is almost thrice the Central Bank’s 2022 target of 8%.

While the central bank has raised its policy rate to 19% to help check inflation, many investors are expected to demand higher rates to lend to the government going forward due to the high inflation rate.

Source: Citibusiness