Africa-Press – Ghana. The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) must reduce the 29% policy rate drastically, economist Dr John Kwakye, has said.
In the view of Dr Kwakye, there can be no justification for the MPC to hold onto the 29 percent rate.
“There can be no justification for BoG to hold on to its PR of 29%, described by the IMF as the highest in real terms in South Sahaha Africa.
There can be no justification for BoG to hold on to its PR of 29%, described by the IMF as the highest in real terms in SSA. The MPC must slash the PR drastically by at least 250 basis points. The PR isn’t the solution to the current inflation with strong supply undercurrents.
“The MPC must slash the policy rate drastically by at least 250 basis points. The PR isn’t the solution to the current inflation with strong supply undercurrents,” the Director of Research at the Institute of Economic Affairs (IEA) wrote on X ahead of the 118th MPC press conference scheduled to take place on Monday, May 27.
According to the IMF, Ghana has the highest real Policy Rate in Sub-Saharan Africa. This is unacceptable and strangulating the economy. With inflation dropping sharply from 54% at end-2022 to 25% at end-April 2024, BoG must slash its PR drastically from the current level of 29%.
He further stated “According to the IMF, Ghana has the highest real Policy Rate in Sub-Saharan Africa.
“This is unacceptable and strangulating the economy. With inflation dropping sharply from 54% at end-2022 to 25% at end-April 2024, BoG must slash its PR drastically from the current level of 29%.”
The BoG maintained the policy rate at 29 percent at the 117th MPC press conference in Accra on Monday, March 25. Chair of the Committee Dr Addison announced at a press conference in Accra on Monday that although the inflation rate dropped marginally, the MPC decided to further monitor the trends hence the decision to maintain the policy rate.
“The committee therefore decided to maintain the policy rate at 29 %,” he said. Monetary Policy Committee keeps policy rate at 29%
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