Journal of Finance and Economics
ISSN (Print): 2328-7284 ISSN (Online): 2328-7276 Website: Editor-in-chief: Suman Banerjee
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Journal of Finance and Economics. 2019, 7(3), 93-99
DOI: 10.12691/jfe-7-3-3
Open AccessArticle

The Relationship between Interest Rates and Inflation in Ghana and Their Impact on Economic Growth for the Period 2006-2015

Dickson Akoto1,

1Business School, Radford University College, P.O.Box CT 2837 Cantonments, Accra, Ghana

Pub. Date: August 25, 2019

Cite this paper:
Dickson Akoto. The Relationship between Interest Rates and Inflation in Ghana and Their Impact on Economic Growth for the Period 2006-2015. Journal of Finance and Economics. 2019; 7(3):93-99. doi: 10.12691/jfe-7-3-3


High interest rates and high inflation rates have been the bane of many developing countries especially in Sub Saharan Africa. The researcher sought to determine the relationship between these two variables and their resultant effect on the economic growth of Ghana over last ten years. Changes in interest rates within the period were compared with changes in inflation rates. These figures were used to determine the coefficient of correlation between these variables. The changes in these two variables were also compared with the changes in the economic growth rate within the period to ascertain any relationship between them. The research showed that interest rates and inflation rates in Ghana were positively correlated and they had strong impact on the economic growth of Ghana within the period under review.

growth rates interest rates inflation rates coefficient of correlation

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