Policy rate hike ideal, but would hurt businesses amid rising fuel, utility costs – Prof Quartey

Economist Professor Peter Quartey has expressed support for the Bank of Ghana's decision to maintain the policy rate at 14%, citing the looming inflationary threats to the economy. Addressing rising global oil prices and uncertainty surrounding their future trajectory, Quartey emphasized that the decision is appropriate given the current economic challenges. He highlighted additional pressures such as increasing utility charges and fuel prices at the pump, which contribute to the inflationary concerns.

While acknowledging that the global economic environment could potentially justify a higher policy rate, Quartey noted that such an increase would be detrimental to businesses and the overall cost of doing business. He emphasized the Bank of Ghana's strategy of closely monitoring the situation before making any further decisions.

Quartey expressed confidence in the Bank's approach, stating that it is the right direction, although he recognized the complexity of the global economic landscape. Overall, Quartey endorsed the decision to keep the policy rate unchanged but stressed the importance of continued vigilance in navigating the evolving economic conditions.