The MP for Kwadaso, Dr. Kingsley Nyarko, has explained that the increment in interest rate is part of government’s efforts to curb the persistent hike in inflation.
According to him, “We brought interest rate to as low as 12.5 per cent. You know why interest rates increase? It is a response to dealing with inflation. That is why it is around 23 per cent now.”
Speaking on JoyNews’ AM Show, on Wednesday, the lawmaker indicated that the Bank of Ghana may review their interest rate but commercial banks would also project their figures based on fears that borrowers may default.
According to him, the country needs to enhance its revenue “envelope” in order to cater for the “social goods and services” that the people demand.
In recent times, Ghana’s interest and inflation rates have been on the rise.
The country’s fiscal situation is said to have dwindled to a great extent, the confidence of investors.
Latest statistics indicate that the Bank of Ghana raised its monetary policy rate to 24.4 per cent in October.
Interest rate is projected to reach 26.50 per cent by the end of the last quarter.
According to predictions, Ghana’s interest rate is set to reach about 28.50 per cent in 2023 and then reduce to 27.00 per cent in 2024.
However, the government has promised to put in measures to revive the persistent fiscal problems pending a budget reading on Thursday.
Latest Stories
-
Dr. Musah Abdulai: If the Chief Justice returns: Will it lead to reset, redemption, or rupture?
1 hour -
Tano Deity dispute: Bantamahene pardoned after offering guilty plea to Asantehene
2 hours -
Dumelo inaugurates Board of Tree Crop Development Authority
2 hours -
Akufo-Addo’s office denies reports of attempting to influence upcoming NPP Delegates Conference
2 hours -
WAFCON 2024: Second half brilliance against Tanzania takes Black Queens to quarter-finals
2 hours -
Dison International School holds colourful graduation to mark academic progress
2 hours -
UMaT launches IET-GH Student Chapter with a call to engineer a better future
2 hours -
Dialysis crisis: Cape Coast Teaching Hospital struggling to keep up with demand
2 hours -
NPP must not sideline Kufuor in key decisions – Dr Asah-Asante warns
3 hours -
Afenyo-Markin under fire for ‘strange elevation’ comment to Essikado MP ‘over’ Zanetor
3 hours -
Abanga Yakubu refutes allegations of leading unauthorised anti-galamsey operations
3 hours -
Minority, Majority MPs clash over credit for Ghana’s economic gains
4 hours -
2025 NPP Congress: Kufuor, Akufo-Addo to deliver virtual address to delegates
4 hours -
UG lifts ban on social gatherings amid improved COVID-19 situation
5 hours -
Cataract, glaucoma, and pterygium predominant in Ketu North Municipality
5 hours