Dr. Stephen Amoah
Member of Parliament (MP) for Nhyiaeso, Dr. Stephen Amoah, has called for urgent reforms to the country’s monetary policy, highlighting several anomalies that are contributing to the country’s economic instability.
In a statement delivered on the floor of Parliament on February 11, 2025, Dr. Amoah expressed concerns over the current monetary policy, particularly the handling of the country’s policy rates by the Bank of Ghana.
The MP, who is the immediate-past Deputy Finance Minister, noted that the current inflation-targeted monetary policy, which seeks to use interest rates to control inflation, has had counterproductive effects.
While the policy aims to reduce inflation, the MP pointed out that periods of increasing policy rates have often coincided with rising inflation, instead of the desired economic stabilization.
He cited specific years from 2011 to 2023, revealing that increases in the policy rates were accompanied by higher inflation rates and slower GDP growth.
Dr. Amoah further emphasised that the inflation in Ghana is often driven by cost-push factors, such as high production costs, rather than demand-pull inflation.
This, he argued, makes the current policy approach ineffective in stimulating economic growth.
Dr. Amoah also raised concerns about the pricing of treasury bills, which he believes is deviating from global standards and creating an arbitrary environment for capital asset pricing.
The lawmaker called for a comprehensive review of the monetary policy and proposed that a committee be formed by the Finance, Economy and Development, and Budget Committees to engage with the Bank of Ghana and the Ministry of Finance.
The aim, he said, should be to rectify these fundamental economic issues and create a more resilient economy for Ghana’s long-term growth and stability.
By Ernest Kofi Adu, Parliament House