Exchange rate sentiments, higher inflation expectations drives down business confidence in Ghana – BoG

Sentiments on the exchange rate and higher inflation expectations are among other factors that have driven business confidence down in the country, a latest Bank of Ghana (BoG) survey has shown.

A Monetary Policy Committee (MPC) report released by the central bank today September 12, 2012 showed that the Business Confidence Index computed from the BoG’s surveys, declined from 96.4 in March 2012 to 95.1 in June 2012, largely driven by softened business sentiments on the exchange rate and higher inflation expectations.

Other factors that pulled down business confidence were attributed to sales prospects as well as profit levels, according to MPC Chairman Dr Kofi Wampah who doubles as the acting governor of the BoG.

Similarly, the Consumer Confidence Index declined from 99.5 in May 2012 to 98.4 in July 2012 and was due to lower macro confidence sub-index, the report indicated.

On the other hand, the consumer welfare sub-index increased, it added.

By Ekow Quandzie