The newly appointed Governor of the Bank of Ghana (BoG) Dr. Abdul Nasir Issahaku has vowed to reduce the country’s high inflation.
Ghana’s inflation hit 19.2 percent in March, 2016, after hitting 18.5 percent the previous month. The figure is significantly higher than government’s inflation target for 2016 which is plus/minus 8 percent.
A number of economists have asserted that government will be unable to meet its inflation target for 2016, considering the number of economic challenges the country is currently battling.
Economist and director at the Institute of Statistical Social and Economic Research (ISSER) Prof. Felix Ankomah Asante earlier told Citi Business News, considering the current macro economic conditions achieving an inflation of 8 percent was impossible.
“I think it will be difficult. Yes we are in an election year we expect spending to go high, even if government does not spend; people who do the campaign will spend.
So we expect that prices of goods of services will go up as there are some businesses that come once in every four years for people to take advantage.
So generally we expect prices to go up, so I doubt whether we will be able to get the 8 percent. Maybe it will move a little up above what we expect but 8 percent will be very difficult.”
Prof. Felix Ankomah Asante added ‘i know they are doing their best but we need to do a little more observation and to also make sure that other macro indicators of the economy are also held in check.
We are virtually doing nothing apart from trading so if the cedi is stable because trading is not so active then we need to give ourselves time to make sure that we maintain whatever policy we have over a period of time.’ He stated.
But speaking to journalists after he was sworn in by the President John Mahama, at the Flagstaff House earlier today, Governor of the BoG Dr. Abdul Nasir Issahaku said his outfit will work assiduously to bring down inflation.
‘‘Bringing down inflation is the mandate of the central bank, it is the primary mandate of the central bank to stabilize prices.
So that is where the focus will continue to be, but we should not take our eyes of this important objective to ensure that businesses do well.
And I think while we are trying to bring down inflation, we should be helping the business sector’’. He said.
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