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We can’t tolerate 30% interest rate burden – John Kwakye
The Director of Research at the Institute of Economic Affairs (IEA), Dr John Kwakye wants the interest rate of 30 percent to be reduced immediately by the Bank of Ghana (BoG).
He says the economy can no longer survive on the 30 percent rate.
“The burden placed on the economy by 30% artificial interest rates can not be tolerated anymore. Interest rates must be reduced through monetary policy rationalisation, reduction in government borrowing and reinforced banking regulation.
“Banks have been riding on artificially high interest rates fuelled by ineffective monetary policy and excessive Gov’t borrowing to post high profits. Bank of Ghana must rein in interest rates as a matter of urgency to reduce the burden on the economy,” he wrote on his X platform.
He added “Bank of Ghana has a duty to reduce the interest rate burden on the economy. No business or economy can thrive with over 30% [policy] rate. The problem lies in the Bank’s exclusive reliance on interest rates to control inflation without addressing the supply/cost drivers as well.”
At the last Monetary Policy Committee (MPC) press conference held in Accra on Monday, November 27, the BoG decided to maintain the policy rate at 30 percent.
Governor of the Bank of Ghana Dr Ernest Addison stated that although inflation was dropping, the rate was still high, hence the decision to maintain the policy rate at 30 percent.
The Policy Rate is an interest rate that the central bank sets in order to influence the evolution of the main monetary variables in the economy like consumer prices, exchange rate or credit expansion, among others.
The Committee noted that tighter financing conditions, slower growth in the manufacturing and services sectors, and China’s slower recovery were exerting some moderating influence on global economic activity.
Earlier aggressive policy tightening by advanced economies central banks has contributed to the dampening of inflationary pressures with headline inflation decelerating in many of their economies. This has led to a pause in the tightening cycle. But core inflation remains high and is declining slowly due to strong labour markets, Governor Addison said.
Source: 3news.com
Massive celebrations were recorded countrywide as the Black Stars opened their 2026 World Cup campaign with a 1-0 victory over Panama in Toronto on Wednesday.
Midfielder Caleb Yirenkyi scored the only goal of the match late in the game as he shot in a decent cross from substitute Brandon Asante.
The win gave Ghana a positive start in the competition, placing them in second position behind England, also with three points but with a superior goal aggregate.
After the final whistle, the streets and other viewing centres were turned into partying grounds as fans, mostly clad in the team’s paraphernalia, danced to several World Cup-themed music.
Others blew the vuvuzelas in joyous mood with others putting up a spirited ‘jama’ session.
Former New Patriotic Party (NPP) parliamentary candidate for the Adentan Constituency, Akosua Manu, has urged party members to move away from what she describes as an “entitlement mentality” and focus on unity, sacrifice and hard work as the party prepares for the 2028 general election.
In a statement titled “Is Loyalty a Queue?”, and posted on facebook, Ms. Manu argued that loyalty to the NPP should not be judged by how long a person has been in the party but by their contributions and commitment to its growth.
According to her, the NPP’s history shows that many of its leaders faced significant opposition from within the party before eventually leading it to electoral success.
She cited former President John Agyekum Kufuor as an example, saying he had to overcome resistance from influential figures within the party before winning power for the NPP in 2000.
Ms. Manu noted that after the party lost power in 2008, former President Kufuor faced criticism and accusations from some party members.
However, she said supporters eventually put their differences aside and worked together to rebuild the party.
She pointed to the experience of former President Nana Addo Dankwa Akufo-Addo, who, according to her, faced opposition from some factions within the NPP despite his long service to the party.
“His trials were ten times what Kufuor endured,” she stated, adding that Akufo-Addo eventually overcame the challenges and became President of Ghana.
Turning to the NPP’s current flagbearer, Dr. Mahamudu Bawumia, Ms. Manu said he also faced resistance from different groups within the party while seeking leadership.
She praised Dr. Bawumia for contributing to policy-based political discussions in Ghana and for remaining composed following the NPP’s defeat in the 2024 elections.
According to her, party members must now rally behind him in the same way they supported former Presidents Kufuor and Akufo-Addo.
Ms. Manu, however, warned that internal divisions and a sense of entitlement remain major threats to the party’s future.
She argued that some party members place too much emphasis on how long individuals have belonged to the NPP rather than on their contributions and capabilities.
“This entitlement does not question impact. It does not ask what you sacrificed or what you built. It asks only how long have you been here,” she said.
The former parliamentary candidate cautioned that such attitudes could discourage committed members and prevent the party from selecting the best people for leadership positions.
She further called on the party’s incoming national executives to strengthen the NPP’s core values of sacrifice, honesty, integrity and dedication to national development.
Ms. Manu addressed the concerns of young party supporters, many of whom she said became discouraged following the NPP’s electoral defeat in 2024.
According to her, many young people remain eager to see the party return to power but are unwilling to support internal conflicts driven by personal ambitions.
She urged party elders to place the interests of the NPP above their individual goals and to demonstrate leadership that attracts rather than alienates members.
“The NPP is bigger than any one of us. It always has been. Our collective responsibility is to act like it,” she stated.
By: Jacob Aggrey
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