BoG’s role in fiscal, monetary policies should be clearly spelt out – Franklin Cudjoe – Citi Business News

Franklin Kudjo, founding president and chief executive officer of the IMANI Center for Policy and Education, says the ambiguities surrounding the role of the Central Bank of Ghana on fiscal and monetary policies need to be reconsidered.

Speaking on The Big Issue on Citi TV, he said that the position of the Central Bank claiming that it is only in charge of the monetary aspect and not the financial aspect of the economy is not really clear.

He pointed out that, in the long run, the central bank has come to the table to help solve the problem, as seen with the recent Monetary Policy Committee meeting held on Wednesday, August 17, 2022.

“I think the situation in which we find ourselves requires some kind of response. It is not that the central bank has not reacted in the past. I think the role of the central bank has always been monetary. The bank has always maintained that they are not in charge of fiscal issues.

“To a large extent this has been the situation. That they are not in charge of the fiscal decisions that have automatically caused problems for the central bank.”

“To the extent that everyone was asking the government, especially the President, to speak to the nation. The things we usually get to hear from the finance ministry were not particularly encouraging.

“It was important that the Central Bank made some concessions on the monetary side of things and actually gave a situational report, which they have done. But as it is, is this a fiscal issue over which they have no control, but only giving advice?” He inquired.

The Bank of Ghana has increased the monetary policy rate by 300 basis points from 19 percent to 22 percent.

The central bank took the decision after a meeting of the Monetary Policy Committee on Wednesday due to Ghana’s recent economic challenges.

The last change in the policy rate was done in May 2022 and was retained in July 2022.

BoG’s role in fiscal, monetary policies should be clearly spelt out – Franklin Cudjoe

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