The Chief Executive Officer of the Ghana National Chamber of Commerce and Industry, Mark Badu Aboagye, says the Bank of Ghana should not rush to increase the policy rate.
According to him, doing so will be akin to solving a stomach infection with paracetamol, “the pains will go down, but the issue will not go, and that is the experience we’re having now.”
His comments are in reaction to an indication made by the Governor of the Bank of Ghana, Dr. Ernest Addison that policy rates may be increased soon.
In an interview with Bloomberg, he said “this week, the MPC will be meeting, I do not want to preempt what the Committee will decide but I think is a very complicated issue. As we said inflation is nearly 24%, we need to take a position on what to do with the current policy rate at 17%”.
In response, Mark Boadu Aboagye stated that an increment in the policy rate will have an effect on the real sector.
He also noted that the suggestion that inflation in the country has also peaked might be misleading.
“For me in particular, I don’t see that. You see, when you have inflation and you’re able to identify that it’s from demand side, that you can easily use the monetary policy to deal with it that is immediate. But for supply side it takes much more longer time.
“Now, I mean, there’s no food, I mean, food is short. Now if you want to grow even maize, it will take at least three months unless you’re importing. When you’re importing you’re importing inflation. So there should be a holistic approach, not only concentrating only on the monetary side otherwise you’ll be solving a stomach problem with paracetamol, the pains will go down, but the issue will not go, and that is the experience we’re having now,” he said.
Latest Stories
-
Samson’s Take: Arrogance of Power, Shameful Policing
4 hours -
Burnley score late to draw with Manchester United at Old Trafford
7 hours -
Bayer Leverkusen extend unbeaten run to 46 games after draw with Stuttgart
7 hours -
Chelsea come from two goals down to draw against Aston Villa
7 hours -
Andre Ayew scores in Le Havre’s 3-3 draw with PSG
7 hours -
GPL 2023/24: Kotoko draw with Medeama; Samartex go 7 points clear of Nations FC
7 hours -
Mahama cuts sod for construction of new multipurpose Jakpa palace in Damongo
8 hours -
NSS management assists Papao fire victims
8 hours -
EXPLAINER: Will dumsor end soon?
9 hours -
IMANI Africa takes on EC, accuses it of lying and publishing half truths
9 hours -
Manasseh Azure calls for investigation and prosecution of those responsible for GRA/SML contract
10 hours -
Kwesi Atuahene: Ghana’s health capital depends on HealthTech – Africa Center for Digital Transformation
10 hours -
13 signs your wife is planning on leaving you and you have no idea
10 hours -
IMANI Africa: Ghana’s EC’s dangerous and pathological conduct
10 hours -
If I speak there will be fire – Salah on Klopp row
11 hours