The growth of money supply slowed down in the third quarter of the year, signaling some level of illiquidity in the Ghanaian economy.

According to the Bank of Ghana, the provisional data on monetary aggregates at the end of the third quarter of 2019, broadly reflected considerable moderation in the growth of money supply, consistent with the monetary policy stance.

The annual growth in broad money supply (M2+) slowed from 24.09 per cent a year ago to 16.32 per cent in quarter three of 2019.

Broad money is a measure of the amount of money, or money supply, in a national economy including both highly liquid “narrow money” and less liquid forms.

The slowdown in the growth of M2+ during the review quarter, the central bank said, was largely reflected in decreases in the growth of demand deposits, savings and time deposits.

Demand deposits are purely current account and call deposits.

The other components of M2+, comprising currency in circulation and foreign currency deposits, however, showed an increased growth in quarter three of 2019, relative to that of the previous year.

Meanwhile, the currency outside banks or the banking system have hovered around GH¢11 billion throughout the year.

However, the currency in circulation has also hovered around the GH¢12 billion bracket throughout 2019.

It inched up from GH¢12.6 billion in August to GH¢12.9 billion, the highest so far in the year.

On the treasury market, however, interest rates trended upward.

Rates on the 91-day, 182-day T-bills increased by 132 basis points (1.32%) and 110 basis points (1.10%), respectively year-on-year, to settle at 14.69 per cent and 15.14 per cent, respectively.

The 364-day bill rate, however, remained broadly unchanged at 17.91 per cent in the review quarter.

The rate on the 2-year fixed note increased by 1.0% to settle at 19.00% in quarter three of 2019 from 18.00% in 2018.

The rates on the 3-year and 5-year government of Ghana (GOG) bonds increased by 2.2% and 3.0%, respectively.

Rates on the 7-year and 15-year government-of-Ghana bonds remained unchanged at 16.25% and 19.75%, respectively.