On Thursday, economist Professor Peter Quartey endorsed the Bank of Ghana’s choice to maintain the policy rate at 14%, arguing that the move is fitting given the inflationary pressures facing the economy. Speaking on Joy News’ PM Express Business Edition, Quartey highlighted the surge in global oil prices and the uncertainty surrounding their future trajectory.
"It’s certainly a good move because if you look at the threats to our macro economy, you realise global oil prices have been going up and are likely to go up," Quartey said. He added that the near‑term outlook remains unclear, noting that Ghana is also grappling with rising utility charges and fuel prices at the pump.
Quartey described the decision to keep the rate unchanged as appropriate under the circumstances, stating, “So it is just laudable, or it’s just ideal that you maintain the rate.” He acknowledged that a higher policy rate could be justified in a global context but warned it would not be ideal for businesses and the cost of doing business.
According to the economist, the Bank of Ghana is adopting a cautious approach, monitoring developments before making further adjustments. “The bank is taking the approach of basically to watch the space a little bit and see how it comes out, and then we’ll take a decision,” he said.
Ultimately, Quartey affirmed that the decision to hold the policy rate is “certainly in the right direction.” He emphasized that the current stance helps temper inflationary pressures without unduly burdening the business sector.
