Bring down ‘suffocating’ interest rate in Ghana – John Kwakye tells BoG

Ahead of the 120th Monetary Policy Committee (MPC) press conference to be held on Friday, September 27, an economist and director of research at the Institute of Economic Affairs (IEA), Dr John Kwakye has told the MPC to reduce the policy rate drastically from the current rate of 29%.

He argues that since the inflation rate has dropped drastically it will not be appropriate for the BoG to continue to keep the policy rate at 29 percent.

In a post on his X platform, he indicated that many central banks are cutting their interest rates in response to declining inflation.

It is recalled that during the MPC's  119th meeting, the committee maintained the policy rate at 29% marking the third consecutive time the policy rate of the Central Bank has been held at 29%.