2 years ago
After seeing Ghana’s ostentation complaint surge to 31.7% successful July, the Bank of Ghana responded by hiking the benchmark involvement complaint by 300 ground points. In summation to the complaint hike, the cardinal slope said it volition gradually rise banks’ superior reserve requirements. One adept has said President Nana Akufo-Addo indispensable trim the size of his government.
Largest Benchmark Rate Hike Since 2002
In an effort to tame the country’s runaway ostentation rate, which topped 31.7% successful July, the Ghanaian cardinal slope hiked the benchmark involvement complaint by 300 ground points. Following the latest hike, which is the largest summation connected grounds since 2002, Ghana’s benchmark involvement complaint is present 22 percent.
According to a Bloomberg report, the latest summation means Ghana’s benchmark complaint has present risen by 550 ground points since November 2021. In summation to expanding the benchmark rate, the Bank of Ghana (BOG) revealed successful its exigency monetary argumentation committee (MPC) property merchandise that it plans gradually summation banks’ superior reserve request from 12 percent to 15 percent.
On the overseas speech front, the BOG statement said measures to boost the inflow of overseas speech volition besides beryllium implemented. The connection explained:
To boost the proviso of overseas speech to the economy, the Bank of Ghana is moving collaboratively with the mining firms, planetary lipid companies, and their bankers to acquisition each overseas speech arising from the voluntary repatriation of export proceeds from mining, and lipid and state companies.
By taking these steps, the BOG said it hopes to fortify its overseas speech auctions.
President Nana Akufo-Addo Optimistic About Turning Around Ghana’s Economic Fortunes
Meanwhile, the country’s president, Nana Akufo-Addo, is quoted successful a VOA report apportioning the blasted for Ghana’s economical woes connected the Covid-19 pandemic and the Ukraine-Russia war. According to the Ghanaian President, it is these factors that are causing difficulties not conscionable for Ghanaians but for galore radical astir the world.
However, contempt these difficulties, Akufo-Addo suggested his authorities is up to the task astatine hand.
“We are determined to bring alleviation to the Ghanaian people. Other steps volition beryllium taken, successful particular, to woody with the unacceptable depreciation of the cedi. Reining successful inflation, by bringing down nutrient prices, is simply a large preoccupation of the government, and this season’s emerging, palmy harvest volition assistance america [to] execute this objective, unneurotic with different policies,” the president is quoted explaining.
Reacting to the BOG’s announcement, Courage Kingsley Martey, an economist with Databank Research, is quoted successful the VOA study stating that the steps taken by the cardinal slope mean determination are “going to beryllium short-term consequences oregon tradeoffs.”
Another expert, Godfred Bokpin, a prof astatine the University of Ghana, said it was clip for President Nana Akufo-Addo to show helium tin rein successful spending by reducing the size of his government.
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