BoG's emergency meeting may increase policy rate to 21% - Cassiel Ato Forson

Cassiel Ato Forson121212 Ranking Member of Parliament’s Finance Committee, Dr. Cassiel Ato Forson

Wed, 17 Aug 2022 Source: www.ghanaweb.com

Ranking Member on Parliament’s Finance Committee, Dr. Cassiel Ato Forson, has predicted that the Monetary Policy Committee (MPC) of the Bank of Ghana will increase the policy rate from the current 19% to 21%.

In a Twitter post on August 16, Dr. Ato Forson opined that the country’s economy was going through it worse time since the inception of the 4th Republic.

He blamed the challenges confronting the economy on the incompetence and ineptitude of its managers.

The MP for Ajumako Enyan Esiam further asked for a stop to fiscal dominance in monetary policy.

His comment comes on the back of a scheduled MPC meeting today August 17 to proffer solutions to the country’s challenges.

“BOG’s emergency MPC may increase policy rate to 21%! The Ghanaian Economy is going through its worst form of crisis in the 4th Republic. Always remember this is due to incompetence and ineptitude! Stop the fiscal Dominance in monetary policy,” Dr. Cassiel Ato Forson tweeted.

Ghana’s economy has in recent times experienced a downturn with economists pointing to the rate of inflation, fuel price hikes and the general increase in the cost of living as the basis for the claim.

The government has also been partly blaming the Covid-19 pandemic and the ongoing Russia-Ukraine war as reasons for the challenges while promising to put in place measures to address it.

Amid the challenges, BoG last month maintained the policy rate at 19% making the cost of borrowing remain relatively the same for a period.

Meanwhile, economist Dr. Theo Acheampong has also advised the Bank of Ghana to halt policy rate hikes amid economic downgrades from Fitch and S & P.

In a Facebook post on August 11, the economist said the move will strangle the economy.

“With two almost junk status sovereign downgrades in the space of a week by S&P and Fitch, and with inflation also at an unprecedented 32%, any further attempts by the Bank of Ghana to hike the policy rate in an attempt to control inflation will likely strangle the economy by making the cost of credit extraordinarily high for businesses and households,” part of his post read.

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Source: www.ghanaweb.com
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