“If you raise interest rates only reward the banks, then Ghana’s banking sector is the most profitable in Africa, so the Bank of Ghana itself makes four times as much profit as the Bank of England. The Bank of England leads an economy of 2.7 trillion, forty times the economy of 70 billion.
“How can Bank of Ghana generate more profit than Bank of England? They also profit from high interest rates so high interest rates do not benefit the economy, benefit the banking system, make the Bank of Ghana profitable, make banks very profitable, stifle the private sector, inhibit the growth of the private sector. , inhibiting the growth of the real sector of the economy, therefore inhibiting the creation of jobs for the teeming mass of people,” he opined.
Togbe Afede has consistently opposed the high and rising interest rates in Ghana, as he believes that it only discourages the private sector and also inhibits job creation.
Speaking to reporters on the sidelines of the launch of the 53rd General Assembly of the Association of World Trade Centers, on Thursday, February 9, the former member of the State Council said “reducing inflation, reducing interest rates and the cedi will remain good. stability against the dollar. Only maintaining the interest rate that high will not reduce inflation.
Why did I say that? In developed countries, you raise interest rates to encourage spending, therefore, to reduce the demand for goods and therefore to reduce prices.
The Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) recently increased the policy rate to 28 percent.
This is an increase from the previous level of 27%.