Bank of Ghana accused of contributing to high inflation rates

Associate Professor of Finance at Andrews University in Michigan, USA, Accuses Bank of Ghana of High Inflation

The Bank of Ghana has defended its financing of the government’s 2022 budget with 44.5 billion Ghanaian cedis, saying it was part of the crisis management measures in dealing with the difficulties of 2022.

In a statement, the central bank stated that its financing was designed to address the financing challenges of the budget. However, Professor Williams Kwasi Peprah in an interview said that the bank’s justification was flawed.

“I don’t understand why the Bank of Ghana had to issue a justification with so many problems,” said Professor Peprah.

He went on to point out errors in the bank’s defense, adding that the government should have listened to advice from academia and others to seek support from the International Monetary Fund earlier.

According to Professor Peprah, the 44.5 billion cedi support for the government has led to a high inflation rate of 54.1%, with almost half of this being attributed to the central bank’s actions.

He emphasized that the Bank of Ghana must take sole responsibility for the high inflation in the country, stating that discipline and setting limits could have normalised the situation.

Source: norvanreports.com