Global oil prices could go up further – Prof Quartey backs BoG’s 14% policy rate

Economist Professor Peter Quartey has given his support to the Bank of Ghana's (BoG) decision to keep its policy rate at 14%. He cited rising global oil prices and persistent inflationary risks as the reasons for this decision. Professor Quartey believes this move was appropriate considering the uncertainty surrounding the global economy.

The professor noted that global oil prices have been on the rise and are expected to continue doing so. This creates further risks for Ghana's economy. He also highlighted other pressures faced by consumers and businesses, such as higher utility charges and increased fuel prices.

Despite these challenges, Professor Quartey praised the BoG's decision to maintain the policy rate. He called it a commendable and ideal choice. However, he acknowledged that the BoG could have opted to increase the rate in response to global economic pressures. But he warned that such a move could create additional difficulties for businesses by raising the cost of doing business.

Professor Quartey suggested that the BoG's approach of closely monitoring developments before making its next decision is the right one. He believes this strategy allows the bank to wait and see how the situation unfolds before making a decision. Ultimately, Professor Quartey endorsed the bank's decision to maintain the rate, stating that it's indeed moving in the right direction.