Economic Snap Shot From DataBank

Interest rates seem to be inching up slowly. The 91 day T- bill rate has moved up a few notches to close last week at 27.24% pa from 27.12%pa a fortnight ago and 26.88% pa a month ago. The central bank has confirmed that this is in conformity with OMO to combat expected inflation, which could arise from increase in petrol prices and allied movements in the economy.

Government still has control of inflation as one of its priorities whilst it also prepares the platform for economic growth.

The Monetary Policy Committee (MPC) is expected to assist BoG in formulating and executing cogent and relevant monetary policy. So far so good as the currency seems to be holding its own against the US dollar. However interest rate is still a challenge in the face of impending readjustment (to more realistic rates) of utility and power tariffs. But as interest rates go up the more corporates see increased cost of operations and the more growth is threatened, unless of course Government puts in place some stimulus measures