Economist at the Institute of Economic Affairs (IEA), Dr. John Kwakye has said that the Bank of Ghana cannot be exonerated from the dire economic challenges the country is currently facing.
The Director of Research at the IEA says the Central Bank’s policies in recent years have exacerbated the country’s economic instability rather than promoting growth and development in accordance with its core mandate.
In his view, BoG has played a very significant role in the economic hardships Ghanaians are experiencing leading to worsening living standards.
In justifying his claims, the economist mentioned that the Central Bank’s actions, particularly excessive monetary financing and high interest rates, have stifled the very stability and growth contrary to its mandate.
Dr. Kwakye says printing money to finance the government’s deficits skyrocketing inflation, weakening the local currency, and increasing the cost of living for ordinary Ghanaians and high-income earners.
He adds that the BoG’s high policy rate purported to curb inflation has also made borrowing very expensive, stifling private sector investment and growth.
In an X post cited by The High Street Journal, the former member of the Monetary Policy Committee of the Central Bank maintained that it is apparent that the Bank has veered off its core mandate and rather “raining” hardships on Ghanaians.
“Contrary to its mandate, over recent years, Bank of Ghana’s policies of excessive monetary financing and prohibitively -high interest rates have rather stifled economic stability and growth,” he expressed.
As the country approaches a new dawn of governance, Dr. Kwakye says there is the need for a reset of the Bank of Ghana to align it with its original mandate of fostering economic stability and supporting development.
A reformed Bank of Ghana, Dr. John Kwakye believes, could become a powerful agent of economic transformation. By adopting growth-oriented policies, the Central Bank could help stabilize the cedi, reduce inflation, and create a thriving environment for businesses.
“The Bank of Ghana must be reset to become an effective agent of stabilization and development,” he recommended.
