Financial analyst defends BoG’s monetary policy, criticises Dr. Kwakye’s remarks

A financial analyst, Dr. Michael Dawson, has responded to recent criticisms made by Dr. John Kwakye, the Director of Research at the Institute of Economic Affairs (IEA), regarding the Bank of Ghana’s (BoG) monetary policy.

Dr. Dawson accused Dr. Kwakye of making unfair and negative comments that could potentially destabilize the financial sector.

The IEA Director recently posted on social media, describing the Bank of Ghana's monetary policy rate as a failure.

In response to this, Dr. Dawson noted that this is not the first time Dr. Kwakye has made such disparaging remarks.

In a statement, Dr. Dawson expressed his disappointment, pointing out that Dr. Kwakye's comments are problematic coming from a former member of the BoG’s Monetary Policy Committee (MPC), where he served for about 10 years.

“I am very disappointed to read Dr. Kwakye’s post. This is a former member of the BoG MPC, who spent around a decade on that committee. Is Dr. Kwakye really an economist? His comments suggest a failure of understanding,” Dr. Dawson remarked.

He continued by highlighting that Dr. Kwakye’s criticism is particularly surprising given his history as a former staff member of the Bank of Ghana and his representation of the BoG at the International Monetary Fund (IMF).

Dr. Dawson, however, praised the BoG MPC for its significant efforts to reduce inflation and stabilize the Ghanaian currency during difficult economic times.

He pointed to the impressive reduction in inflation from 54.1% during the peak of the COVID-19 pandemic to the current rate of 22.1% as of October 2024, stressing that the measures implemented by the MPC have been effective.

“The work done by the BoG MPC is clear for all to see. We all remember the inflation rates we faced due to the impact of COVID-19. But the MPC’s actions have been impactful. From 54.1% inflation to the current rate, the MPC has performed well,” Dr. Dawson said.

He further criticized Dr. Kwakye’s characterization of the monetary policy rate as a failure, especially in light of the recent inflation figures.

“How can one describe the policy rate as a failure when you compare the inflation figures of October 2024 and 2023?” Dr. Dawson asked.

He, therefore, urged Dr. Kwakye to review the MPC’s statements and better understand the reasoning behind the committee's decisions. He also encouraged Dr. Kwakye to share with Ghanaians the solutions he recommended during his time on the MPC.

“It is becoming clear that Dr. Kwakye is harboring a negative agenda against the Bank of Ghana. Since retiring from the MPC, his commentary has been consistently critical,” Dr. Dawson asserted.

He called on the public to support the BoG in fulfilling its mandate, acknowledging the significant improvements in Ghana’s economy.

"Credit must go to the managers of the economy for the progress made," he concluded.

MA