John Kwakye welcomes cut in policy rate to 27%

An economist and Director of Research at the Institute of Economic Affairs (IEA) Dr John Kwakye has welcomed the decision by the Monetary Policy Committee (MPC) of the Bank of Ghana to cut the policy rate from 29 percent to 27 percent.

He says he had always called for a reduction in the rate given the drop in inflation. "I welcome the reduction in the PR from 29% to 27%.

I have long called for a cut of at least 200 basis points in line with the sharp drop in inflation during 2022-24 from 54% to 20% and also because the PR is unjustifiably and prohibitively high," he wrote on his X plage on Friday, September 27.

Explaining the decision to cut the rate at the 120th MPC press conference on Friday September 27, the chair of the MPC  Dr Ernest Addison said that the domestic economy continues to recover. "Macroceconomic conditions have generally improved, growth picked up, headline inflation dropping, monetary conditions remain tight, disinflation process is on the course," he said.