Economist Disappointed At The Maintenance Of Policy Rates – Radio Univers 105.7 | Voice of Legon

Economist Dr. Lord Mensah, has expressed disappointment at the decision by the Bank of Ghana to maintain the policy rate at 26 percent.

In an interview with Univers Business Dr. Mensah described the decision by the Monetary policy committee as a sign of a management that lacked direction.

“This a kind of management that  is uncertain , management that doesn’t know where it is going .Especially if you look at for the fourth consecutive time the whole of this year we have maintained policy rates at 26 . The only time we had an increase or decrease was 2015�?.

He added that Economic indicators don’t behave like that .

“If you take Economic Indicator we expect that the economic indicator will show a sign of going up sometimes coming down so for this stagnancy in policy rate, for  the whole year I don’t think it’s the right thing to do�?.

According to him, the move will strongly put constraint on the economy thus preventing businesses The move by the central bank amounts to the fourth consecutive time the monetary policy Committee is maintaining the rate at 26 percent since January this year.

“Now the Businesses don’t know  which direction we are going as far as interest rates is concerned. If the economy is picking up we expect that it lowers interest rates so businesses can borrow at a lower rate for them to do their transactions�?, he further stated.

According to the governor of Bank of Ghana Dr. Adbul Issahaku, the decision was necessary in order for the central bank to achieve it mid-term inflation target of 8 plus or minus 2 percentage points by early next year.

to borrow at a lower rate to enhance their transactions.

By : Caleb Ahinakwah/ Radio Univers 105.7 MHz

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