Inflation has gone down due to BoG’s intervention to take liquidity out of the market – Prof Ebo Turkson
A member of the Monetary Policy Committee (MPC) of the Bank of Ghana, Professor Ebo Turkson, has commended the current leadership of the BoG for taming inflation, following a significant decline in the rate to 3.2%
Professor Ebo Turkson pointed out the effect of a high rate on the economy, saying that high inflation distorts the economy.
“When inflation is high, it disturbs everything in the economy; it doesn’t make the economy stable,” he said.
“We should always have a discussion relative to the benefits of the cost, every economic policy comes with a cost. Price stability comes at a cost,” the Associate Professor of Economics at the University of Ghana added.
“Inflation has gone down as a result of the central bank’s intervention to take liquidity out of the market,” he said.
He makes the point that once gold prices are doing well, it will be only right to take advantage of the sector to increase revenue.
He, however, cautioned against investing all assets in gold.
“I want the Bank of Ghaha to continue with the gold purchase programme. If gold is doing well, why shouldn’t Ghana take advantage of it. We should just take care we don’t put too much of our assets in gold so that when the gold prices go down, we don’t suffer,” he said on the Key Points on TV3 Saturday, April 25.
Source: 3news.com by Laud Nartey
