<\/p>\n
The Director of Research at the Institute of Economic Affairs (IEA) Dr John Kwakye has asked the Monetary Policy Committee (MPC) to be innovative in the new steps to be taken to address the challenges facing the economy.<\/strong><\/p>\nDr Kwakye told 3buisness in interview that there is the need to adopt new measure to support the economy in view of the nature of challenges.<\/p>\nThe MPC commenced a three-day meeting today Tuesday September 20 to review the measures introduced to deal with the challenges facing the economy.<\/p>\n\nPress Release on Inflation in Ghana pic.twitter.com\/Jubv8oYjCM<\/a><\/p>\n\u2014 IEA Ghana (@IEAGhana) September 19, 2022<\/a><\/p>\n<\/blockquote>\nA number of measures have already been outlined by the Committee to support the economy.<\/p>\nAt an emergency meeting held on Wednesday August 17, the Committee increased the Policy rate from 19 to 22 per cent.<\/p>\nGovernor of the BoG Dr Ernest Addison said recent developments in the foreign exchange market showed elevated demand pressures, reflecting among others, continued heightening of uncertainties in the global economy, rising inflation in many advanced economies and the resultant coordinated tightening of monetary policy stance by major central banks.<\/p>\nThis, he added, has further tightened global financing conditions with significant implications for Emerging Markets and Developing Economies (EMDEs), especially for those with weak fundamentals.<\/p>\nThe US Dollar has strengthened against all major currencies. From the beginning of the year to date, the pound sterling has weakened against the US dollar by 12.4 percent while the Euro has also weakened by 11.8 percent. Countries similar to Ghana (Ghana\u2019s peers) are all experiencing sharp depreciation to date.<\/p>\nThe Ghana Cedi, he noted, has depreciated by 25.5 percent year-to-date, reflecting the Ghanaspecific situation, including the challenging financing of the budget from both domestic and external sources, downgrading of sovereign credit rating, nonresidents disinvestment in local currency bonds, and loss of reserve buffers.<\/p>\n\nREAD ALSO:<\/span>\u00a0\u00a0Rising inflation in Ghana is a complicated issue \u2013 BoG Governor<\/span><\/p>\n<\/div>\n\u201cThe execution of the budget for the year has remained challenging. Revenue has not kept pace with projections and created financing challenges. In the absence of access to the international capital market and given the constrained domestic financing, central bank overdraft has helped to close the financing gap as reflected in the mid-year budget review. The Bank of Ghana is working with theMinistry of Finance to agree on a cap on the overdraft.<\/p>\n\u201cWhilst addressing the immediate financing problems, the ongoing policy discussions with the IMF are expected to address the underlyingmacroeconomic challenges, restore fiscal and debt sustainability, and provide sustainable balance of payments cushion.<\/p>\n\u201cUnder the circumstances, and considering the risks to the inflation outlook, the Committee decided on a 300 basis points increase in the Monetary Policy Rate to 22 percent.\u201d<\/p>\nBy Laud Nartey|3news.com|Ghana<\/strong><\/p>\n\u00a0<\/p>\n<\/div>\n
Dr Kwakye told 3buisness in interview that there is the need to adopt new measure to support the economy in view of the nature of challenges.<\/p>\n
The MPC commenced a three-day meeting today Tuesday September 20 to review the measures introduced to deal with the challenges facing the economy.<\/p>\n
\nPress Release on Inflation in Ghana pic.twitter.com\/Jubv8oYjCM<\/a><\/p>\n\u2014 IEA Ghana (@IEAGhana) September 19, 2022<\/a><\/p>\n<\/blockquote>\nA number of measures have already been outlined by the Committee to support the economy.<\/p>\nAt an emergency meeting held on Wednesday August 17, the Committee increased the Policy rate from 19 to 22 per cent.<\/p>\nGovernor of the BoG Dr Ernest Addison said recent developments in the foreign exchange market showed elevated demand pressures, reflecting among others, continued heightening of uncertainties in the global economy, rising inflation in many advanced economies and the resultant coordinated tightening of monetary policy stance by major central banks.<\/p>\nThis, he added, has further tightened global financing conditions with significant implications for Emerging Markets and Developing Economies (EMDEs), especially for those with weak fundamentals.<\/p>\nThe US Dollar has strengthened against all major currencies. From the beginning of the year to date, the pound sterling has weakened against the US dollar by 12.4 percent while the Euro has also weakened by 11.8 percent. Countries similar to Ghana (Ghana\u2019s peers) are all experiencing sharp depreciation to date.<\/p>\nThe Ghana Cedi, he noted, has depreciated by 25.5 percent year-to-date, reflecting the Ghanaspecific situation, including the challenging financing of the budget from both domestic and external sources, downgrading of sovereign credit rating, nonresidents disinvestment in local currency bonds, and loss of reserve buffers.<\/p>\n\nREAD ALSO:<\/span>\u00a0\u00a0Rising inflation in Ghana is a complicated issue \u2013 BoG Governor<\/span><\/p>\n<\/div>\n\u201cThe execution of the budget for the year has remained challenging. Revenue has not kept pace with projections and created financing challenges. In the absence of access to the international capital market and given the constrained domestic financing, central bank overdraft has helped to close the financing gap as reflected in the mid-year budget review. The Bank of Ghana is working with theMinistry of Finance to agree on a cap on the overdraft.<\/p>\n\u201cWhilst addressing the immediate financing problems, the ongoing policy discussions with the IMF are expected to address the underlyingmacroeconomic challenges, restore fiscal and debt sustainability, and provide sustainable balance of payments cushion.<\/p>\n\u201cUnder the circumstances, and considering the risks to the inflation outlook, the Committee decided on a 300 basis points increase in the Monetary Policy Rate to 22 percent.\u201d<\/p>\nBy Laud Nartey|3news.com|Ghana<\/strong><\/p>\n\u00a0<\/p>\n<\/div>\n
Press Release on Inflation in Ghana pic.twitter.com\/Jubv8oYjCM<\/a><\/p>\n\u2014 IEA Ghana (@IEAGhana) September 19, 2022<\/a><\/p>\n<\/blockquote>\nA number of measures have already been outlined by the Committee to support the economy.<\/p>\nAt an emergency meeting held on Wednesday August 17, the Committee increased the Policy rate from 19 to 22 per cent.<\/p>\nGovernor of the BoG Dr Ernest Addison said recent developments in the foreign exchange market showed elevated demand pressures, reflecting among others, continued heightening of uncertainties in the global economy, rising inflation in many advanced economies and the resultant coordinated tightening of monetary policy stance by major central banks.<\/p>\nThis, he added, has further tightened global financing conditions with significant implications for Emerging Markets and Developing Economies (EMDEs), especially for those with weak fundamentals.<\/p>\nThe US Dollar has strengthened against all major currencies. From the beginning of the year to date, the pound sterling has weakened against the US dollar by 12.4 percent while the Euro has also weakened by 11.8 percent. Countries similar to Ghana (Ghana\u2019s peers) are all experiencing sharp depreciation to date.<\/p>\nThe Ghana Cedi, he noted, has depreciated by 25.5 percent year-to-date, reflecting the Ghanaspecific situation, including the challenging financing of the budget from both domestic and external sources, downgrading of sovereign credit rating, nonresidents disinvestment in local currency bonds, and loss of reserve buffers.<\/p>\n\nREAD ALSO:<\/span>\u00a0\u00a0Rising inflation in Ghana is a complicated issue \u2013 BoG Governor<\/span><\/p>\n<\/div>\n\u201cThe execution of the budget for the year has remained challenging. Revenue has not kept pace with projections and created financing challenges. In the absence of access to the international capital market and given the constrained domestic financing, central bank overdraft has helped to close the financing gap as reflected in the mid-year budget review. The Bank of Ghana is working with theMinistry of Finance to agree on a cap on the overdraft.<\/p>\n\u201cWhilst addressing the immediate financing problems, the ongoing policy discussions with the IMF are expected to address the underlyingmacroeconomic challenges, restore fiscal and debt sustainability, and provide sustainable balance of payments cushion.<\/p>\n\u201cUnder the circumstances, and considering the risks to the inflation outlook, the Committee decided on a 300 basis points increase in the Monetary Policy Rate to 22 percent.\u201d<\/p>\nBy Laud Nartey|3news.com|Ghana<\/strong><\/p>\n\u00a0<\/p>\n<\/div>\n
\u2014 IEA Ghana (@IEAGhana) September 19, 2022<\/a><\/p>\n<\/blockquote>\nA number of measures have already been outlined by the Committee to support the economy.<\/p>\nAt an emergency meeting held on Wednesday August 17, the Committee increased the Policy rate from 19 to 22 per cent.<\/p>\nGovernor of the BoG Dr Ernest Addison said recent developments in the foreign exchange market showed elevated demand pressures, reflecting among others, continued heightening of uncertainties in the global economy, rising inflation in many advanced economies and the resultant coordinated tightening of monetary policy stance by major central banks.<\/p>\nThis, he added, has further tightened global financing conditions with significant implications for Emerging Markets and Developing Economies (EMDEs), especially for those with weak fundamentals.<\/p>\nThe US Dollar has strengthened against all major currencies. From the beginning of the year to date, the pound sterling has weakened against the US dollar by 12.4 percent while the Euro has also weakened by 11.8 percent. Countries similar to Ghana (Ghana\u2019s peers) are all experiencing sharp depreciation to date.<\/p>\nThe Ghana Cedi, he noted, has depreciated by 25.5 percent year-to-date, reflecting the Ghanaspecific situation, including the challenging financing of the budget from both domestic and external sources, downgrading of sovereign credit rating, nonresidents disinvestment in local currency bonds, and loss of reserve buffers.<\/p>\n\nREAD ALSO:<\/span>\u00a0\u00a0Rising inflation in Ghana is a complicated issue \u2013 BoG Governor<\/span><\/p>\n<\/div>\n\u201cThe execution of the budget for the year has remained challenging. Revenue has not kept pace with projections and created financing challenges. In the absence of access to the international capital market and given the constrained domestic financing, central bank overdraft has helped to close the financing gap as reflected in the mid-year budget review. The Bank of Ghana is working with theMinistry of Finance to agree on a cap on the overdraft.<\/p>\n\u201cWhilst addressing the immediate financing problems, the ongoing policy discussions with the IMF are expected to address the underlyingmacroeconomic challenges, restore fiscal and debt sustainability, and provide sustainable balance of payments cushion.<\/p>\n\u201cUnder the circumstances, and considering the risks to the inflation outlook, the Committee decided on a 300 basis points increase in the Monetary Policy Rate to 22 percent.\u201d<\/p>\nBy Laud Nartey|3news.com|Ghana<\/strong><\/p>\n\u00a0<\/p>\n<\/div>\n
A number of measures have already been outlined by the Committee to support the economy.<\/p>\n
At an emergency meeting held on Wednesday August 17, the Committee increased the Policy rate from 19 to 22 per cent.<\/p>\n
Governor of the BoG Dr Ernest Addison said recent developments in the foreign exchange market showed elevated demand pressures, reflecting among others, continued heightening of uncertainties in the global economy, rising inflation in many advanced economies and the resultant coordinated tightening of monetary policy stance by major central banks.<\/p>\n
This, he added, has further tightened global financing conditions with significant implications for Emerging Markets and Developing Economies (EMDEs), especially for those with weak fundamentals.<\/p>\n
The US Dollar has strengthened against all major currencies. From the beginning of the year to date, the pound sterling has weakened against the US dollar by 12.4 percent while the Euro has also weakened by 11.8 percent. Countries similar to Ghana (Ghana\u2019s peers) are all experiencing sharp depreciation to date.<\/p>\n
The Ghana Cedi, he noted, has depreciated by 25.5 percent year-to-date, reflecting the Ghanaspecific situation, including the challenging financing of the budget from both domestic and external sources, downgrading of sovereign credit rating, nonresidents disinvestment in local currency bonds, and loss of reserve buffers.<\/p>\n
READ ALSO:<\/span>\u00a0\u00a0Rising inflation in Ghana is a complicated issue \u2013 BoG Governor<\/span><\/p>\n<\/div>\n\u201cThe execution of the budget for the year has remained challenging. Revenue has not kept pace with projections and created financing challenges. In the absence of access to the international capital market and given the constrained domestic financing, central bank overdraft has helped to close the financing gap as reflected in the mid-year budget review. The Bank of Ghana is working with theMinistry of Finance to agree on a cap on the overdraft.<\/p>\n\u201cWhilst addressing the immediate financing problems, the ongoing policy discussions with the IMF are expected to address the underlyingmacroeconomic challenges, restore fiscal and debt sustainability, and provide sustainable balance of payments cushion.<\/p>\n\u201cUnder the circumstances, and considering the risks to the inflation outlook, the Committee decided on a 300 basis points increase in the Monetary Policy Rate to 22 percent.\u201d<\/p>\nBy Laud Nartey|3news.com|Ghana<\/strong><\/p>\n\u00a0<\/p>\n<\/div>\n
\u201cThe execution of the budget for the year has remained challenging. Revenue has not kept pace with projections and created financing challenges. In the absence of access to the international capital market and given the constrained domestic financing, central bank overdraft has helped to close the financing gap as reflected in the mid-year budget review. The Bank of Ghana is working with theMinistry of Finance to agree on a cap on the overdraft.<\/p>\n
\u201cWhilst addressing the immediate financing problems, the ongoing policy discussions with the IMF are expected to address the underlyingmacroeconomic challenges, restore fiscal and debt sustainability, and provide sustainable balance of payments cushion.<\/p>\n
\u201cUnder the circumstances, and considering the risks to the inflation outlook, the Committee decided on a 300 basis points increase in the Monetary Policy Rate to 22 percent.\u201d<\/p>\n
By Laud Nartey|3news.com|Ghana<\/strong><\/p>\n\u00a0<\/p>\n<\/div>\n
\u00a0<\/p>\n<\/div>\n
![\"\"](\"http:\/\/www.ghanamma.com\/wp-content\/uploads\/2022\/09\/1663231588_586_JOHN-Kwakye-1-696x488.jpg\" "\\"JOHN-Kwakye-1\\"\/")