Director of the Institute of Statistical, Social and Economic Research (ISSER) of the University of Ghana Professor Peter Quartey has said that although the 43.1 percent inflation rate in Ghana is still high, the country has achieved some results in managing the rate.
He however said that the achievement in managing the rate of increasing Inflation is insignificant.
Speaking on the Business Focus on TV3 with Paa Kwesi Asare on Monday August 14, Prof Quartey said “I wouldn’t say we have not seen an improvement in the rate of inflation. I think in your introduction you said we went as far as 64 percent plus in November 2022. Gradually, it has tapered downwards, we are now around 43.1 percent.
“That is still very high, I agree, you cannot live with inflation of about 43 percent, it doesn’t augur well for livelihood of any economy. But just to make the point that yes, we are achieving some results but it is not very significant.”
Regarding efforts to tame rising inflation, the International Monetary Fund (IMF) recently told the Bank of Ghana (BoG) that the GH¢60.8billion loss incurred should not stop the central bank from fulfilling its policy mandates and Ensuring Inflation Gradually returns toward its 8 percent target.
Inflation is currently 43.1 percent in the month of June, per records from the Ghana Statistical Service (GSS).
Indeed, the IMF said, the central bank income is expected to be sufficient to cover monetary Policy Operational Costs.
“The Ghanaian authorities’ domestic debt exchange (DDE) is a key element of their plan to restore macroeconomic stability and public debt sustainability. The BoG is participating in the DDE to share some of the burden the DDE places on government debt holders, along with banks, other financial institutions, pension funds and individuals.
“The loss the BoG incurred in the process has contributed to reducing its net equity to a negative value. Importantly, however, this does not prevent the BoG from fulfilling its policy mandates and ensuring inflation gradually returns toward its 8-percent target. Indeed, central bank income is expected to be sufficient to cover monetary policy operational costs.
“The BoG’s net equity is expected to improve significantly over time and eventually return to positive territory,” the IMF said while providing answers to frequently asked questions on the $3billion bailout.
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