Interest rates climb to 32.17%; government misses target by 10.8% – MyJoyOnline.com

Interest rates climbed again on the money market indicating the rising cost of government’s domestic debt.

According to auction results by the Bank of Ghana, the yield on the 364-day bill went up by 0.34% to 32.17%. That of the 91-day bill also shot up to 28.12% from 27.28% the previous week.

The rate on the 182-day bill also increased marginally by 0.28% to 29.39%.

Interest rates have gone up consistently since April 2023 after the Treasury forced the rates down in March 2023.

Therefore, market watchers and analysts are worried about the impact of the rising cost of the T-bills on government expenditure.

Meanwhile, the government missed its T-bills target by 10.8% (¢408.36m).

The government secured ¢3.350 billion from the sale of the short term securities.  Majority of the bids came from the 91-day bill.

About ¢2.601 billion bids tendered by the investors for the 3-month bill were all accepted.

Also, all the ¢496.95 million offered for the 182-day T-bill were accepted by the government.

For the 364-day bill, about ¢252 million were tendered, but ¢248.36 million were taken by the Treasury.

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