Togbe Afede XIV hits back at BoG's "lame" response over high-interest rates

The President of the National House of Chiefs, Togbe Afede XIV, has hit back the Bank of Ghana's response to his recent comments on the country's Monetary Policy Rate.

Togbe Afede XIV

He described the Central bank's response as "misrepresentations and outright lies".

He said: "We cannot use “higher interest rates to maintain exchange rate stability. It has not worked for us. Parity laws tell us the opposite. And certainly, the high monetary policy rates will not help efforts to remove the "structural bottlenecks" that BoG alluded to."

Earlier, the investment banker raised concern over BoG's governance structure and high, lending and monetary policy rates.

But the Bank of Ghana rejected claims by Togbe Afede XIV that its policy measures have led to high-interest rates in the country.


BoG in a statement noted that claims by the investment Banker, that the Central Bank has lost focus, can best be described as unfounded and inaccurate.

The Bank of Ghana maintains that it has kept to its main focus of inflation targeting which has gotten, results in recent times.

The Bank maintained that this program has over the years had rather led to some significant reduction in the inflation rate, which has fed into a policy rate reduction, significant, until recent times.


However, Togbe Afede in a rebuttal indicated that the responses from the BoG are "lame, and failed to address the core issues I raised".

He said none of the BoG's arguments justify the astronomically high monetary policy rates that have burdened our economy over the past 20 years.

He said "It is unfortunate that not since May 2003 when I questioned the soundness of BOG’s monetary policy has there been any open debate on the subject. I would urge our economists to show some interest. The "independence" of BOG does not grant it immunity from constructive criticism. BOG must demonstrate a genuine commitment to stability, growth, and employment generation."



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