President urges BOG to address high interest rate

President Nana Addo Dankwa Akufo-Addo has urged the Bank of Ghana (BoG) to interrogate the cause of the high interest rates in the country and come up with an appropriate action plan to address the problem.

“It is not right that the Central Bank’s Monetary Policy Rate stands at 13 per cent while the commercial banks lend to the private sector at rates of 21 per cent and above”

“This is a gap we have to bridge, if we are to realize the vision of a Ghana whose economy is globally competitive,” he said

The President said this when he inaugurated the Governing Board of the BoG at the Jubilee House in Accra last Friday.

Chaired by the Governor of BoG, Dr Ernest Kwamina Yedu Addison, the board also has Dr Maxell Opoku-Afari and Mrs Elsie Addo Awadzi, the First and Second Deputy Governors of the Central Bank as members.

Other members include Charles Kof Adu Boahen, from the Ministry of Finance, Dr Kwame Owusu-Nyantakyi, Dr Samuel Nii-Noi Ashong, and Mr Jude Kofi Bucknor

The rest are Madam Angela Kyerematen-Jimoh, Mrs Comfort Ocran, Dr Regina Ohene-Darko Adutwum, Mr Joseph Blignam Alhassan and Mr Andrew Adinorte Boye-Doe.

President Akufo-Addo commended the members on their appointment, indicating that they had been carefully chosen because of their expertise, knowledge and accomplishments to assist the work of the Bank

“I am counting on this board with its diverse experiences, talents and skills to support the agenda of the bank and help formulate policies necessary for the achievement of its objectives. This is a charge I am confident you will keep,” he said.

He said although the Governors and Board members of the BoG were appointed by him, the Central Bank had operational independence to enable it to deliver on its multiple mandates without hindrance or interference

“Full autonomy however does not mean the bank’s monetary policies should be at variance with government’s overall macro-economic policies,” he said and stressed the need for the BoG and the government to work together to ensure that monetary policies complemented fiscal policies.

That, he added, would create an enabling macroeconomic environment to promote growth and development of the economy.

President AKufo-Addo commended the Central Bank for supporting his administration over the past four years and the clean-up of the banking sector

He also commended the bank for introducing innovations such as the development of the Gold Purchasing Programme introduced by the BoG and the pilot Central Bank Digital Currency which seeks to transform the architect of the country’s financial system.

The Governor of BoG, Dr Addison, thanked the President for the confidence reposed in the members to serve on the board.

“The task that you have given to us comes to us with a greater sense of responsibility to deliver on the mandate of the Bank for the benefit of the Ghanaian economy. As enormous and daunting this task is, we are confident that we will be able to deliver and we pledge to pursue prudent policy to consolidate the gains we have made over the past four years,” he said.


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