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
-
‘I look forward to working closely with President-elect Faye to enhance Ghanaian-Senegalese relations’ – Akufo-Addo
56 mins -
Girl, 8, only survivor as 45 killed in bus crash in South Africa
2 hours -
Biden to host star-studded NYC fundraiser with Obama and Clinton
2 hours -
GDNR, AAU and others launch Universal Acceptance for local languages in internet domain names
2 hours -
Ogum and Kotoko’s March malaise
4 hours -
BushGang Zee releases new afro dancehall anthem “Accra Stay By Plan”
4 hours -
2 repair vessels dispatched for undersea cable repairs – says NCA’s latest update
4 hours -
Multimedia Group Limited’s Clinton Yeboah shortlisted for 2 International Sports Press Association Awards
4 hours -
Supreme Court upholds High Court verdict on fraudulent sale of property by Senior Police Officer
5 hours -
NHIS Biometric Membership Authentication System limited rollout satisfactory – NHIA Deputy CEO
5 hours -
Yara Ghana donates 1,107 bags of fertilizers to women farmers, farmers with disabilities
5 hours -
Tinubu forms team to find solutions to ailing economy
5 hours -
Jacob Zuma barred from running in South Africa election
5 hours -
Western Cape Education wins national primary school track and field championships
6 hours -
Cyber Security Authority issues Public Alert over Easter and Eid al-Fitr season scams
6 hours