BoG’s increase in the Policy Rate unfortunate – Prof. Stephen Adei

The Former Rector of the Ghana Institute for Management and Public Administration ( GIMPA ) Professor Stephen Adei has questioned the Bank of Ghana’s increase in the Police Rate, describing the timing as just inappropriate.

Contrary to the expectations of many analysts, the Central Bank increased the rate from 21 to 22 percent – citing economic threats like inflation.

But the Association of Ghana Industries, has criticised this inflation-targeting approach in monetary policy by the bank as one that could eventually lead to a mass collapse of industries in the country.

Professor Adei also explains to Joy Business, the central bank may have gotten it wrong this time around given the current challenging economic situation.

“At this stage when your industries are collapsing, who are those who are going to borrow? There are certain things I believe require really radical rethinking. At this moment, I would not have recommended it. Psychologically, the people are so down that you cannot at this time do certain things” he said

“I know that eventually the Government has to increase revenue but all these things must be within a long term perspective. I think that it’s not something that you can solve on the TV and that it requires really radical rethinking of our economy and how we are going to go forward” he concluded.

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