What is the sense in increasing policy rate when monies are in people's polytanks? – Adongo

Member of Parliament for the Bolgatanga Central constituency, Isaac Adongo has taken a swipe at the Bank of Ghana’s Monetary Policy Committee for increasing the monetary policy rate instead of addressing the over-circulation of money in the economy.

According to him, a lot of Ghanaians are not keeping their monies in the banks and this is one of the issues affecting the banking sector.

He also stated that the Governor’s refusal to address this issue is his way of running away from solving the country’s inflation and depreciation.

Speaking to journalists in parliament on July 28, 2023, he said “We all know inflation where it is now is experiencing elevated levels of demand pressures and it is the duty of the Central Bank to control those demand pressures. Let me show you the figures of how Governor Addison is running away from bringing down inflation addressing interest rates and solving the depreciation of the currency.”

He continued: “So, what is the sense in increasing the monetary policy rate when people don’t send money to the banks and they are keeping the money under their pillows when in their rooms? In fact, we are beginning to know that people are buying houses purposely as warehouses for their money in Ghana today. Dr. Addison must be very careful and concerned about that.”

Adongo stated that the amount of money in circulation outside the banking sector even empowers theft in homes.

This he described as a frightening phenomenon.

“2023 the year has not gone anywhere but the amount of money outside the banking sector has grown by 41 %. Is that not frightening? Is it not frightening that domestic staff are now having money to steal?” he asked.

SSD/OGB



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