{"id":76130,"date":"2025-07-18T09:42:48","date_gmt":"2025-07-18T09:42:48","guid":{"rendered":"https:\/\/sotnews.agency\/?p=76130"},"modified":"2025-07-18T09:42:48","modified_gmt":"2025-07-18T09:42:48","slug":"policy-rate-cut-could-fuel-inflation-ug-economist-warns","status":"publish","type":"post","link":"https:\/\/sotnews.agency\/?p=76130","title":{"rendered":"Policy rate cut could fuel inflation \u2013 UG Economist warns"},"content":{"rendered":"
\n
\n \t<\/i> Read Time:<\/span>1 Minute, 36 Second <\/div>\n\n <\/div>
\n

An Economist at the University of Ghana, Dr Adu Owusu-Sarkodie, is cautioning the Bank of Ghana (BoG) against any hasty moves to lower the monetary policy rate, warning, such a decision could jeopardise progress made in bringing down inflation.<\/p>\n

Speaking on JoyNews\u2019 PM Express, Dr. Sarkodie referenced historical patterns where reductions in the policy rate were followed by a sharp rise in inflation, undermining the central bank\u2019s efforts to maintain macroeconomic stability.<\/p>\n

\u201cWe\u2019ve seen this before, each time we ease too soon, inflation shoots up again,\u201d Dr. Sarkodie said. \u201cThe Bank of Ghana must tread very carefully, especially at a time when inflation is not yet firmly under control.\u201d<\/p>\n

Ghana\u2019s inflation rate, while showing signs of gradual decline in recent months, remains above the central bank\u2019s medium-term target.<\/p>\n

With global commodity prices fluctuating and domestic pressures such as food and fuel prices still volatile, Dr. Sarkodie warned that any policy misstep could reverse recent gains.<\/p>\n

The Monetary Policy Committee (MPC) of the Bank of Ghana is expected to announce its latest decision on the policy rate in the coming days. Market watchers are divided, with some advocating for a rate cut to stimulate economic growth, while others echo concerns about the potential inflationary impact.<\/p>\n

Dr. Sarkodie emphasised the importance of maintaining a balanced approach.<\/p>\n

\u201cWe all want growth, but not at the expense of stability. If inflation returns, the costs will be even higher in the long run\u2014especially for low-income households,\u201d he noted.<\/p>\n

The policy rate, currently at 28%, has been a key tool in the central bank\u2019s fight against inflation. Any adjustment is likely to send strong signals to financial markets and businesses regarding the central bank\u2019s priorities moving forward\u201d, he added.<\/p>\n

As the BoG deliberates its next move, experts like Dr. Sarkodie are calling for prudence and data-driven decision-making to safeguard the country\u2019s fragile economic recovery.<\/p>\n<\/div>\n

\n
\n \n
\n \n \"Happy\"\n <\/a>\n
\n Happy <\/div>\n
\n 0<\/span>\n \n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Sad\"\n <\/a>\n
\n Sad <\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Excited\"\n <\/a>\n
\n Excited <\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Sleepy\"\n <\/a>\n
\n Sleepy <\/div>\n
\n 0<\/span>\n \n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n
\n \n \"Angry\"\n <\/a>\n
Angry<\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n \n <\/div>\n <\/div>\n\n
\n \n \"Surprise\"\n <\/a>\n
Surprise<\/div>\n
\n 0<\/span>\n 0<\/span> %<\/span>\n <\/div>\n <\/div>\n\n <\/div>\n <\/div>\n\n ","protected":false},"excerpt":{"rendered":"
\"PolicyAn Economist at the University of Ghana, Dr Adu Owusu-Sarkodie, is cautioning the Bank of Ghana (BoG) against any hasty moves to lower the monetary policy rate, warning, such a decision could jeopardise progress made in bringing down inflation. Speaking on JoyNews\u2019 PM Express, Dr. Sarkodie referenced historical patterns where reductions in the policy rate [\u2026]<\/div>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"facebook_2277560469115098_106292521332774":"","twitter_aToxNzczMzI3Njk4OTg4ODUxMjAxOw==_1773327698988851200":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-76130","post","type-post","status-publish","format-standard","hentry","category-blog"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/76130","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=76130"}],"version-history":[{"count":0,"href":"https:\/\/sotnews.agency\/index.php?rest_route=\/wp\/v2\/posts\/76130\/revisions"}],"wp:attachment":[{"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=76130"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=76130"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sotnews.agency\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=76130"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}