Fitch says its concerns about Ghana's economic imbalances growing

ACCRA Thu Feb 6, 2014 12:11pm EST

ACCRA Feb 6 (Reuters) - Fitch ratings agency said on Thursday its concerns about Ghana's macroeconomic imbalances were growing and the government's current policy mix would not correct the situation.

"You are starting to see the repercussions of loose fiscal policy: double-digit inflation and current account deficit, a sharply weakening currency and limited import cover," Carmen Altenkirch, director of Fitch's sovereign group, told Reuters.

Ghana's Central Bank raised its key policy rate on Thursday by two percentage points to 18 percent. Fitch downgraded Ghana in October to a 'B' rating with a stable outlook, saying the government was overspending.