Audio By Carbonatix
Dr Gideon Boako, MP for Tano North, has raised strong concerns about the tools deployed by the government to attain single-digit inflation, arguing that they have come at a steep cost to households and the broader economy.
Speaking during the 2026 Budget debate, he said the government relied heavily on sterilisation and excessive fiscal consolidation to suppress inflation.
“I dare say that without them we were still going to achieve the same results anyway,” he claimed.
He cited data from the budget showing that the Bank of Ghana sterilised GH¢62 billion through Open Market Operations and foreign exchange auctions in 2024. According to him, the move effectively drained liquidity from the pockets of ordinary Ghanaians.
“GH¢62 billion that should have been available in the pockets of Ghanaians to spend this year has been siphoned to the Bank of Ghana,” he argued.
Dr Boako warned that the impact would be felt sharply during the Christmas season.
“Traders will just be sitting by their products in the scorching sun with potential buyers walking around without buying,” he said, describing the situation as a direct consequence of tight monetary conditions.
He added that despite food glut and adequate supply of goods, low disposable income means people simply cannot afford to buy.
The MP further questioned why goods with positive income elasticity of demand remain unsold.
“Why would these goods still be glutted on the market without buyers if individuals have money in their pockets?” he asked.
He urged the government to urgently release liquidity into the economy.
“The government must release this money into the economy with speed to enable people to have the money to spend,” he emphasised.
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