Goldman, Absa Say Iran War Has Closed Window for Ghana Rate Cuts

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Or sign-in if you have an account.Johnson Asiama Photo by Kent Nishimura /Photographer: Kent Nishimura/Blo(Bloomberg) — Goldman Sachs Group Inc. and Absa Group Ltd. believe the window for the Bank of Ghana to resume policy easing this year has closed due to fresh inflation pressures from renewed tensions in the Middle EastTHIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountThe escalation in the Iran war this month has restricted traffic flow through the Strait of Hormuz, a key artery for energy and fertilizer shipments, causing fuel and urea prices to spike.“Amid the current geopolitical uncertainty, and due to higher oil prices and a weaker cedi we revised our inflation forecasts higher,” Goldman’s Ludovica Ambrosino said in a research note. “We therefore expect the BoG to remain on hold until year-end” — revised from a cut in the third quarter, she said.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againThe central bank on Wednesday kept its key interest rate unchanged for a second time in a row after five straight cuts.Governor Johnson Asiama said the “stance remains appropriate to guide inflation into the medium-term target band, while allowing time to assess the evolving geopolitical developments and their potential impact on the domestic economy.” He added that inflation is projected to rise gradually into the central bank’s 6% to 10% target band, with potential upward adjustments in utility tariffs, escalating geopolitical tensions in the Middle East and the associated increase in oil prices posing risks to the outlook.Annual inflation quickened at its fastest pace this year to 5.3% in June from 3.7% a month earlier.Given the factors mentioned by Asiama, “particularly the renewed uncertainties created by the Middle East conflict that had already led to higher fuel prices of between 3.8-6% during the second pricing window in July, we expect the policy rate to remain unchanged through the second half of the year,” Absa analysts Ridle Markus and Phumelele Mbiyo said in a note. 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