Dr. Daniel Amarteye Anim, a development economist, lamented the Bank of Ghana's increase in the policy rate and warned that it could kill off new firms across the nation.

The Central Bank decided to raise the Monetary Policy Rate by 250 basis points to 24.5%, the highest level since 2017.

The country's soaring inflation, which is currently 33.9%, is to blame for the increase, according to the Bank of Ghana.

Dr. Daniel Amarteye Anim, who is also the executive director of the Policy Initiative for Economic Development, said in an interview with Starr News that new enterprises won't be given money to increase their output.

“Certainly, what it means is that the cost of borrowing, the cost of capital will increase, and as capital increases, startups or young businesses will not be in a better position. Because it will not make economic sense for you to go and borrow at a very high rate when money that comes to the business will not be able to pay for that particular facility. So, a lot of people will be denied capital and as they are denied, they will not be in a better position to expand production.”

He added: “As production declines, jobs will not be created, it will even affect revenue and the government will not get its share of revenue in terms of taxation. So, these are the implications of this particular policy in terms of consistently increasing policy rate and its implication on businesses. I believe that it is not the way to go and that we should find a better approach to ensuring that we minimize the cost of living in the country in terms of increases in the price of goods and services.”