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Business News of Saturday, 21 August 2021


Interrogate the issue of high interest rates in Ghana – Akufo-Addo to new BoG Board

President Nana Addo Dankwa Akufo-Addo play videoPresident Nana Addo Dankwa Akufo-Addo

• President Akufo-Addo has tasked the Board of the central bank to interrogate and address concerns of high interest rates

• He believes there is still a gap disparity between the monetary policy rate and the commercial banks' lending rate

• He made the call at the inauguration of the Governing Board of the Bank of Ghana

President Nana Addo Dankwa Akufo-Addo has inaugurated the Governing Board of the Bank of Bank with a call on them to implement key policies for economic growth.

Speaking at a ceremony on Friday August 20, 2021 at the Jubilee House, President Akufo Addo charged the board members to interrogate the issue of high interest rates in Ghana and how the problem should be addressed in order to enhance the competitiveness of the private sector.

“It is surely not right that the central bank’s monetary policy rate stands at 13.5 percent whiles the commercial banks lend to the private sector at 21 percent and above. This is a gap we have to break if we are to realise a vision of Ghana with economies globally competitive. I believe the Bank of Ghana is best placed to lead this process of reflection and action,” the president said.

On the banking sector, President Akufo-Addo said that he still remains encouraged by the many corporate governance measures that have been put in by the Bank of Ghana to mitigate against any future bank failures and ensure a resilient banking sector.

“Ladies and Gentleman of the Board, you have all been chosen because of your expertise, knowledge and accomplishments in the areas of concern under its jurisdiction. I am counting on this board with its diverse experiences, talents and skills to support the agenda of the central bank to help formulate policies necessary for the achievement of its objectives as set forth in Section 9 of Act 612 (2012), the Bank of Ghana Act and this is a charge I am confident you will keep,” President Akufo said.

“Whiles the president appoints the Governor, his or her deputies as well members of the Board of Directors, the Bank is however guaranteed by statues, operational independence in order to enable it to deliver on its multiple mandates without hindrance or interference,” he added.

He therefore said that full autonomy of the central bank does not mean its monetary policies should vary with government’s overall macroeconomic policies.

“With 64 years of experience behind us, I believe we have learnt or should have learnt lessons from both of our own history and from the experiences of other countries about how this partnership should work. History has taught us well that the monetary policy must complement fiscal policy to create an enabling microeconomic environment to promote growth and development of economies including the Ghanaian economy.”

Meanwhile, Governing Board of the Bank of Ghana is chaired by Dr. Ernest Addison, Governor of the Bank of Ghana, with members including Dr. Maxwell Opoku-Afari, First Deputy Governor of the Bank of Ghana, Mrs. Elsie Addo Awadzi, Second Deputy Governor of the Bank of Ghana and Mr. Charles Kofi Adu Boahen, Minister of State at the Ministry of Finance.

Other members are, Dr. Kwame Owusu-Nyantekyi, Dr. Samuel Nii-Noi Ashong, Mr.
Jude Kofi Bucknor, Mr. Joseph Blignam Alhassan, Mr. Andrew Adinorte Boye-Doe, Mrs. Comfort Ocran, Dr. Regina Adutwum, Ms. Angela Kyerematen-Jimoh and Professor Eric Osei Assibey.

The Board will be responsible for the formulation of policies for the achievement of the Central Bank’s objectives.

Watch a playback of the event below: