Vice President Dr. Mahamudu Bawumia says government and the Bank of Ghana are working together to stabilize the cedi and check inflation.
Dr. Bawumia says the Central Bank has begun implementing a number of policies to address inflation, which currently stands at 33.9 percent.
The Vice President was speaking in an interview with a Kenyan TV station.
“In Ghana, we are dealing with the issues in the context of a very squeezed or tight budget. On the Monetary Policy side, the Central Bank is trying to control inflation. There have been a number of interest rate increases to deal with the situation.”
But economists have warned that the continual rise in interest rates may worsen the country’s economic challenges.
Ghana’s inflation continues to rise, reaching 33.9 percent in August 2022.
The development has raised concerns about Ghana’s rising inflation rate in history amid a cost-of-living crisis.
The Government Statistician, Prof. Samuel Kobina Annim has already said the current rising inflation in the country has more to do with the country’s fiscal policies rather than monetary policy.
According to him, confirmed data collected by the Ghana Statistical Service points to the fact that the rising cost of goods can only be tackled through policy decisions taken by the government on the supply side of things.
The Bank of Ghana is also attributing the situation to a combination of tighter global financing conditions, sharp pressures on the exchange rate, and elevated inflation, which pose some policy challenges.