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Ghana Raises Benchmark Interest Rate To 18% To Bolster Currency

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http://www.bloomberg.com/news/2014-02-06/ghana-raises-benchmark-interest-rate-to-18-to-bolster-currency.html

Ghana’s central bank increased its benchmark interest rate by 2 percentage points, a day after it announced curbs on foreign-currency trading to halt a slide in the cedi.

The key lending rate was raised to 18 percent, Governor Kofi Wampah told reporters today in Accra, the capital. All seven economists predicted higher rates, with forecasts ranging from 17 percent to 18 percent.

The Bank of Ghana moved its rate-setting meeting two weeks earlier than scheduled to respond to the cedi’s slump to a record low against the dollar. Yesterday, the bank stepped in to stabilize the currency by setting limits on foreign-exchange transactions and ordering all local transactions to be done in the cedi.

“The central bank is behind the curve in reining in inflation (GHCPALLY),” Celeste Fauconnier, an economist at Rand Merchant Bank in Johannesburg, said in a note to clients before today’s decision. “Cedi losses together with recent increases in utility prices will exert upward pressure on inflation.”

And another country joins the club increasing interest rates.

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When do money outflows force a change in UK policy? Or do they just grit their teeth and keep printing? Looks like we are heading for a higher interest rate world whether Georgie boy, the UK banks and indebted sheeple like it or not.

I still believe Osborne + Carnage will change the QE remit in April so that the BoE can start buying distressed MBS again. That would have a direct impact on bank balance sheets and profits and almost certainly keep mortgage interest rates lower than they would be otherwise. A disaster for the real economy but yet another leg up for the housing bubble.

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Presumably there, like here, banksters still have control of the money supply.

Wouldnt it be easier to just lynch the banksters? They seem to be having no trouble lynching everyone else in the surrounding nations at the moment.

I understand here you cant call for the death penalty against practicing banksters (although a fair few at least have had the good nature to top themselves recently), but surely theres somewhere in the world that still allows just barbaric punishment for such a crime?

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