Member of Parliament for Tano North and Spokesperson to Vice-President Mahamudu Bawumia, Gideon Boako has argued that Ghana’s current single-digit inflation is possible because of policy measures put in place by the former New Patriotic Party administration.
Addressing Parliament, Mr Boako explained that by April 2014, the Government of Ghana had signed a Standard Credit Facility Agreement with the IMF which introduced macro-fiscal programs aimed at reducing inflation.
He noted that the plan, which was communicated by both the IMF and the Bank of Ghana, was structured to bring inflation down to single digits by the end of 2025.
He stated that the current administration only continued the program that was already in place and is now benefiting from it.
He added that officials of the previous government should be proud that their policies have contributed to the current inflation achievement.
Mr Boako however expressed worry over what he described as the tools used by the present government to push inflation down.
He warned that these tools could affect the wider economy and ordinary citizens.
He identified two measures he believes were used in 2025 to support the single-digit inflation.
The first was “sterilization” by the Bank of Ghana, which he explained as a monetary mechanism that withdraws money from the public and channels it back into the central bank.
He argued that this reduces disposable income and affects household consumption.
The second measure, he explained, was what he called excessive fiscal consolidation by the Ministry of Finance, anchored on delayed payments and what he described as arrests intended to present a good public image.
Mr Boako referenced paragraph 248 of the budget statement, which outlines intensified open market operations by the Bank of Ghana in line with its disinflation goals. The document notes limits placed on net domestic assets through higher stabilization and reduced claims on government.
He highlighted the minister’s report that 62 billion cedis was involved in this process and cautioned that the economic impact of these actions must be examined closely.
By: Jacob Aggrey
