The Chief Executive Officer of Dalex Finance, Joe Jackson, has expressed confidence in the government’s ability to tame inflation and achieve its set targets.

According to him, the Governor of the Bank of Ghana and the Minister of Finance have the necessary tools to manage the situation and have shown commitment to bringing inflation down to 14%, making the goal achievable.

Speaking on the sidelines of the Business and Financial Times–Ecobank "The Money Summit," he said, “If the Governor of the Central Bank and the Minister of Finance say that the inflation target is being revised downwards to 14%, I would say to you that the two of them are key. Their actions or inactions will determine whether it comes true. They hold everything in their hands.”

The government has set a new end-of-year inflation target of 12%. Currently, inflation stands at 23.1%. Joe Jackson believes that since the key economic regulators are confident, it is likely the target will be met.

“I would like to quote a Nigerian proverb. I used to live in Nigeria. It says, ‘You are holding the knife, you are holding the yam. Why are you asking us how much you should cut for a slice?’ If the Governor is holding the yam and the Minister of Finance is holding the knife, and they say they are going to cut it down to 14%, then I would say that if they are committed, it will happen,” he added.

According to him, the major issue driving inflation has been reckless borrowing and a lack of fiscal discipline. However, he believes that if these issues are addressed, things will improve.

“The elephant in the room has always been the government borrowing money, what you call deficit financing, beyond prudent levels. Now, if the two of them sit down and honor their commitment to keep deficit financing under control and maintain a disciplined budget, and if the Governor works to remove excess liquidity from the market, then yes, it can happen,” he added.

The Money Summit was under the theme: "Optimising Investment and Pensions Management: Strategies for Sustainable Retirement Income and Economic Growth".

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SSD/MA