Deal decisively with inflation - IEA to Bank of Ghana

The Institute of Economic Affairs (IEA) has advised the Bank of Ghana (BoG) to engage and seek a comprehensive approach in dealing with inflation.

The research institute highlighted the need for the Central Bank to adopt a collaborative approach with stakeholders to consider other frameworks, in addition to the demand-focused Inflation Targeting (IT) framework to manage persistent inflation that has over years been driven by entrenched supply and demand influences.

Speaking at a roundtable, Director of Research, IEA, Dr. John Kwakye said stemming the volatilities of food of production and ensuring that food produce reached the market timely.

“The fiscal deficit bias in Ghana must be addressed head-on so that it does not remain a macroeconomically-establishing albatross around the country’s neck”.

Dr. Kwakye advised that a permanent solution to the fiscal deficit bias is needed to streamline expenditure and scale up the revenue.