The business community’s ability to survive and compete will be eroded following the decision by the Monetary Policy Committee of the Bank of Ghana to peg the policy rate at 25 percent.
[contextly_sidebar id=”G3tuqSIh4t8P9dDZgsE3ZiBA9uVSVbYv”]This is according to the Chief Executive Officer of the Private Enterprise Federation (PEF), Nana Osei Bonsu.
According to him, the already challenging business environment in relation to high interest rates and access to credit may further be worsened if the Bank of Ghana does not increase money supply and goes on to rather tighten its supply.
‘’Government must reduce its expenditure from grandiose schemes to prudent investments that will yield returns to enable government and businesses to execute their agenda.’’
The Bank of Ghana in a bid to tame the country’s growing inflation rate as well as the poor performance of the cedi on Monday increased the monetary policy rate to 25 percent from the previous 24 percent.
‘’We are in a situation where we are dealing with imports coming in at low cost and its reflected in the pricing of Ghanaian made commodities versus imports and we are paying at a high rate and hence become uncompetitive and then lose your market share’’ Nana Osei Bonsu told Citi Business News.
The Private Enterprise Federation also wants the Bank of Ghana to ‘’retrace their tracks over how far they have come with policy rates and its effects, they will see that is has been very influential in damaging the competitiveness of businesses.’’
By: Lorrencia Nkrumah/citifmonline.com/Ghana