Togbe Afede XIV, the paramount chief of the Asogli Traditional Area, has declared that it is wrong for the Bank of Ghana to follow the policy of hiking interest rates in order to curb inflationary pressures.

To support his claim, Togbe Afede XIV compared Ghana's minimum salary to that of the United Kingdom, which is GBP9.50 per hour, or GBP76 for an 8-hour workday, whereas the wage in Ghana is GH14.88 per day, less than GBP1.

"It is also inappropriate for BoG to persist in trying to contain inflation in Ghana using high-interest rates as may be successfully done in a rich country like the UK," Togbe Afede XIV wrote in an opinion post spotted by GhanaWeb.

“These high interest rates made it difficult for businesses to borrow to invest in the real sectors of the economy to achieve the value-addition we crave. It also perpetuated our import dependence, while making it difficult for local entrepreneurs to borrow, invest and increase local ownership of the economy,” he noted.

He further accused the BoG officials of inadvertently frustrating efforts aimed at restructuring the Ghanaian economy.

“Bank of Ghana officials have inadvertently frustrated the restructuring of the economy, which they themselves have identified as the solution to our balance of payments deficit and currency depreciation problems.”

“It is difficult to see how policy rate increases can fight cost-pushed inflation resulting from food or crude oil price increases or increased taxes on petroleum products. Sadly, even at the height of the COVID-19 pandemic, when income levels had fallen world-wide, and stimulus packages were being implemented everywhere to boost economic activity, BoG still ensured that we suffer under strangulating high interest rates,” the economist added.

While indicating that Bank of Ghana's monetary policy decisions have not helped in improving economic policy measures over the years, Togbe Afede XIV said it has succeeded in maintaining a growth-stifling 'high inflation – high interest rate' environment adding that "it has also created the most profitable banking sector in Africa, if not the world, all with disastrous consequences for the cedi.”