Rising Gov't Expenditure 👉Threatening Economy – 🔊BoG

  |   Ghana News

Governor of the Bank of Ghana, Dr Ernest Addison, has said rising government expenditure and weakened revenue levels are the major threats to the swift stabilisation of the economy.

He added that some of these concerns forced the Monetary Policy committee to keep the rate unchanged at 16 per cent.

The Governor noted that the Monetary Policy Committee was also worried about continued revenue weakness which requires expenditure adjustments to contain the larger than the projected budget deficit.

"If the fiscal situation was better and stable we would have gone down on the policy rate" he added.

But responding to these concerns the Governor said things are rather going get better for the cedi as the central bank reserves are in strong position than previously.

He added once the fundamentals are right and the interest rate well positioned, then things should be firmly stabilised going forward.

Dollarisation of the economy Dr Addison said the Bank is satisfied with the level of compliance by some businesses in pricing only in cedis rather than foreign currencies.

He said they took these steps to enforce regulations on foreign exchange because of its impact on the local currency and the exchange rate.

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