The Bank of Ghana (BoG) has warned policymakers against the withdrawal of support measures instituted to address the effects of the Covid-19 pandemic.
According to the First Deputy Governor of Bank of Ghana (BoG), Dr Maxwell Opoku-Afari, this could harm the economic recovery process.
“A careful balancing act between unwinding the policy support would be needed by policymakers, to ensure that stability in a post-pandemic environment is guaranteed,” Dr Opoku-Afari said.
He was speaking at the opening of a two-day workshop on financial literacy for Journalists for Business Advocacy (JBA) at Prampram in the Greater Accra Region on the theme: “Understanding Monetary Policy in a Post Pandemic Era.”
He said the Bank would continue to monitor developments and take the appropriate decisions.
At the height of the Covid-19 pandemic, the government introduced some key innovative policy measures to help contain the negative impact of the pandemic on the citizenry and the economy.
Dr Opoku-Afari said Ghana’s response to the Covid-19 pandemic has been decisive and broad-based, with both the fiscal and monetary authorities implementing complementary measures to tackle the effects of the pandemic.
The government, in particular, adopted a “whatever it takes” stance to minimize the impact of the pandemic, culminating in some GHc21 billion Covid-19-related expenditure in 2020.
To complement the fiscal policy actions, the Bank of Ghana deployed various tools, namely: the interest rate tool, macroprudential policies, market liquidity support, and triggered its emergency financing clause to purchase a Government Covid-19 Bond.
Dr Opoku-Afari said the mix of policies implemented helped to moderate the impact of the pandemic on the economy and contributed significantly to a faster pace of economic recovery than anticipated.
“Ghana managed to record a measured positive growth in 2020 unlike many others that slipped into negative growth rates.
"Amidst the pandemic and surge in inflation, the Central Bank has successfully steered inflation back into the target band, a process that was significantly helped by the extraordinary stability in the foreign exchange market in an election year while foreign exchange reserves level is at a record high,” he said.
He said the economy was entering a new phase of macroeconomic development with low inflation and well-anchored expectations and pledged the Bank of Ghana would pursue prudent policies to safeguard the primary objective of price stability.
On the current inflation targeting regime, Dr Opoku-Afari said transparency is crucial in fostering the credibility of the Central Bank’s policies and called on financial journalists to play a key role in disseminating the Bank’s policies to support the recovery process.
“The Central Bank will continue to implement policies consistent with its inflation-targeting framework to entrench the current low inflation environment,” he added.
Latest Stories
-
‘We have missed him for months’ – Arteta on Thomas Partey
13 seconds -
Togo heads to polls amid tensions over law reform
2 mins -
Nigerians excited over Harry and Meghan’s planned visit
6 mins -
‘We are sorry but we need to stay calm’ – Andre Ayew on Black Stars recent form
23 mins -
Election 2024: Bawumia dares Mahama to two-man debate
29 mins -
Bawumia is a man of integrity and discipline unlike Mahama – Miracles Aboagye
34 mins -
Ejisu by-election: NDC is sponsoring Aduomi; don’t vote for him – Bawumia to NPP supporters
38 mins -
Freedom of speech must engender development
41 mins -
Ghana Hajj Board announces flight schedules for 2024 pilgrimage
47 mins -
T-bills: Interest rates increased for first time since January 1; government fails to meet target
2 hours -
Ghana retains 10th position with lowest fuel price in Africa
2 hours -
Mahama cuts sod for new Jakpa palace in Damongo
3 hours -
Will Ghana’s democracy stand the test of time in the 2024 elections?
5 hours -
Hindsight: Dreams fairytale run proved one thing; it is possible
7 hours -
God makes rulers, not you; you can’t choose your successor – Mahama to Akufo-Addo
8 hours