Interest rates hit 5-year record

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• C.STEPHEN SACKEY 11 years ago

  This is of course quantitave easing reversed - if one can even call this a monetary policy by the BOG.
  
  If these guys are seccessful they may achieve the following results.
  1/ Inflation may subside- how much a ...
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  This is of course quantitave easing reversed - if one can even call this a monetary policy by the BOG.
  
  If these guys are seccessful they may achieve the following results.
  1/ Inflation may subside- how much and for how long begs the question.
  2/ Economic growth will decrease- assuming businesses utilize bank loans for their business plans.
  
  If the above benchmarks are attained it may result in a rise in non- performing loan. How much of this can the banks absorb before they become a systematic risk to the financial sector and thus the economy at large? Regulators should perform their compliance requirements before this policy is implemented.
  
  Now,to the larger question concerning depositors savings accounts. How much of this short-term anticipated interest largesse would be passed onto depositors in the form of higher yields on their savings account? After all, the loans the banks make comes out of their time deposits,and not from the banks capital? Is it any wonder then why there are so many banks in Ghana: they got interest income of 25%+ on depositors money they loan out without risking that much of their capital.
  
  Just to wrap up. Hope the BOG monetary policy works out- we are all dying for something to work well in Ghana and also want to tame the beast - inflation.
  
  And,just a reminder, I don't want to upend banking 101,after all that's what we got, but for sake of fairness and equity depositor's ox is gorged enough and should be compensated.

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• me 11 years ago

  inflation cannot subside in an import-based economy

  inflation cannot subside in an import-based economy

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• ghanaba 11 years ago

  all officials shuld just return the excess cash in DOLLARS received on contracts which they are unable to use, but are packed in their bedrooms and ghana will be free,

  all officials shuld just return the excess cash in DOLLARS received on contracts which they are unable to use, but are packed in their bedrooms and ghana will be free,

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• GHANA 11 years ago

  THIS GUY MUST BE SHOT.
  
  USELESS GOVERNOR OF A CENTRAL BANK.
  
  JUST HOPE HIS QUALIFICATIONS AND "EXPERIENCE" ARE GENUINE.

  THIS GUY MUST BE SHOT.
  
  USELESS GOVERNOR OF A CENTRAL BANK.
  
  JUST HOPE HIS QUALIFICATIONS AND "EXPERIENCE" ARE GENUINE.

  reply
• DD 11 years ago

  in fact that man called Wampah must go, he is incompetent to the highest level

  in fact that man called Wampah must go, he is incompetent to the highest level

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• 2016 11 years ago

  Now the e de bee k3k3 is being called to account for the mess, and e de bee k3k3 has failed miserably to show any competence, ability, acumen, intelligence, vision, confidence and credibility to arrest that hollowness of a ma ...
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  Now the e de bee k3k3 is being called to account for the mess, and e de bee k3k3 has failed miserably to show any competence, ability, acumen, intelligence, vision, confidence and credibility to arrest that hollowness of a mantra called e de bee k3k3. I say throw out e de bee k3k3 in 2016, because what it knows best, is to loot and mismanage the country into the abyss.

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