- BoG explains that recent interest rate hikes aim to manage inflation and protect long-term purchasing power
- Key BoG officials and GUTA executives attend the crucial meeting
- Bank of Ghana assures GUTA of its commitment to a stable macroeconomic environment
The Bank of Ghana (BoG) has reassured the Ghana Union of Traders Association (GUTA) of its commitment to maintaining a stable macroeconomic environment, despite the ongoing economic challenges. This assurance was given during an important meeting at the Bank Square, where both parties discussed mutual concerns and the impact of recent monetary policy decisions on businesses.
This engagement is part of the BoG’s broader stakeholder outreach following its Monetary Policy Committee (MPC) meetings. Acknowledging the concerns of the business community regarding rising borrowing costs and broader economic challenges, BoG officials explained that inflationary pressures, both locally and globally, have prompted a proactive policy response.
The Bank clarified that recent adjustments to the policy rate were based on a comprehensive analysis of inflation trends, exchange rate developments, and global financial conditions.
While acknowledging the short-term challenges higher interest rates might present to businesses, the BoG emphasized that these measures are necessary to anchor inflation expectations and protect the purchasing power of both households and businesses in the long run.
During the meeting, the BoG also presented to GUTA’s executive team, highlighting the importance of price stability in restoring investor confidence and ensuring economic balance. The Bank stressed that collaboration with key business stakeholders remains crucial for shaping effective monetary policies. In a move towards greater transparency and accountability, the BoG announced that, for the first time since adopting its inflation-targeting framework, it had published the individual voting decisions of MPC members. This step, the Bank noted, aligns with international best practices and aims to bolster public confidence in its decision-making process.
Key BoG officials present at the meeting included Dr. Philip Abradu-Otoo, Director of Research; Mr. Bernard Otabil, Director of Communications; Mr. Ismail Adam, Acting Head of the Banking Supervision Department; and Mr. Ernest Nii Sowah Ahulu, Officer-in-Charge of the Financial Markets Department. GUTA was represented by its President, Dr. Joseph Obeng, alongside other key executives.
