The Private Enterprise Federation has slammed the Bank of Ghana's Inflation Targeting Frameworks, claiming that they have failed to keep inflation under control as planned.
According to Nana Osei Bonsu, the company's Chief Executive, the strategy or practice of boosting the policy rate whenever inflation rises has not been beneficial.
In May 2022, inflation soared to 27.6 percent, causing interest rates to surge.
"Increasing the policy rate while there is inflation does not drive it down." It really raises inflation since the cost of money in the banking system will rise, and the cost of doing business in the private sector will rise as well."The reliance on imported raw supplies. Now, when it comes to housing, every Ghanaian aspires to possess a home. Why do we keep using clinker, or cement, in construction? Clay may be transformed into bricks. Take a look around the world; 90% of countries use bricks; why can't we?" he asked.
"So if we rely on local raw resources to build houses and roads, the reliance on foreign exchange to acquire clinker and cement will disappear, bringing down market prices," he added.
Transport (39.0 percent), Household Equipment and Maintenance (33.8 percent), Housing, Water, Gas and Electricity (32.3 percent), and Food and Non-Alcoholic Beverages (30.1.6 percent) all had higher inflation rates in May 2022 than in May 2021.
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