{"id":1232519,"date":"2022-10-24T07:37:45","date_gmt":"2022-10-24T07:37:45","guid":{"rendered":"https:\/\/www.ghanamma.com\/2022\/10\/24\/interest-rates-hit-33-government-misses-t-bills-sale-by-16\/"},"modified":"2022-10-24T07:37:45","modified_gmt":"2022-10-24T07:37:45","slug":"interest-rates-hit-33-government-misses-t-bills-sale-by-16","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2022\/10\/24\/interest-rates-hit-33-government-misses-t-bills-sale-by-16\/","title":{"rendered":"Interest rates hit 33%; government misses T-bills sale by 16%"},"content":{"rendered":"

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Interest rates inched up to 33% to reflect surging inflation and the rapid depreciation of the cedi.<\/p>\n

The increase in interest rates is however lower than the current inflation of 37.2% and the rate of cedi depreciation which is more than 50%.<\/p>\n

This means the real rate of return of the short-term securities for investors is still negative.<\/p>\n

Again, the lower yields of the Treasury bills compared to the rates of inflation and the cedi depreciation make it unattractive for investors to purchase the cedi denominated assets<\/p>\n

Once again, the sale of Treasury bills by government was undersubscribed for the second consecutive week by 16%.<\/p>\n

According to the auctioning results by the Bank of Ghana, the interest rate on the 91-day T-bills went up by 0.76% to 32.15%.<\/p>\n

That of the 182-day T-bill also hit 33.07%, from 32.23% the previous week.<\/p>\n

The results also showed that the government secured a total of \u00a21.31 billion from the sale of the short-term instruments, against a target of \u00a21.56 billion.<\/p>\n

Some market watchers may attribute the under-subscription of the financial instruments to liquidity challenges within the economy.<\/p>\n

The rising interest rates means government will pay more for interest payments this year.<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n
Securities<\/strong><\/td>\nBids Tendered (GH\u00a2)<\/strong><\/td>\nBids Accepted (GH\u00a2)<\/strong><\/td>\n<\/tr>\n
\u00a091 Day Bill<\/td>\n\u00a01.142 billion<\/td>\n\u00a01.142 billion<\/td>\n<\/tr>\n
182 Day Bill<\/td>\n\u00a0167.4 million<\/td>\n\u00a0167.41million<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n
Total<\/strong><\/td>\n1.309 billion<\/td>\n1.309 billion<\/td>\n<\/tr>\n
Target<\/strong><\/td>\n1.561 billion<\/td>\n\ufeff1.561 billion<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/figure>\n

DISCLAIMER: <\/strong>The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Interest rates inched up to 33% to reflect surging inflation and the rapid depreciation of the cedi. The increase in interest rates is however lower than the current inflation of 37.2% and the rate of cedi depreciation which is more than 50%. This means the real rate of return of the short-term securities for investors […]<\/p>\n","protected":false},"author":1,"featured_media":1232522,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[1090,1327,4233,1402,1591,5593,5082],"class_list":{"0":"post-1232519","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-government","9":"tag-hit","10":"tag-interest","11":"tag-misses","12":"tag-rates","13":"tag-sale","14":"tag-tbills"},"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1232519","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=1232519"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1232519\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=1232519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=1232519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=1232519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}