BoG dismiss claims of profiteering from high interest rates

  Sat, 18 May 2024
Economy & Investments BoG dismiss claims of profiteering from high interest rates

Bank of Ghana has categorically denied allegations that it deliberately maintains high Monetary Policy rates to generate profits.

BoG’s clarification comes amid concerns from some quarters that the high interest rates are detrimental to the economic growth and profitability of businesses.

In an interview with Citi News, the central bank emphasised its commitment to implementing sound monetary policies aimed at achieving a stable level of inflation, in line with its medium-term target.

Bernard Otabil, Director of Communications at the BoG, dismissed the claims, stating that anyone making such allegations lacks a thorough understanding of central banking.

“Anyone who’ll make that claim that the Central Bank will deliberately keep the monetary policy rate high to make a profit does not fully understand or appreciate the work of central banking. It’s rather the opposite. If the Monetary policy rate is high, it actually impacts our SSNIT negatively because it leads to losses and that affects us. And of course, that’s the price the Central Bank pays in achieving their mandate.”

Mr. Otabil explained that the central bank’s primary focus is on achieving stability, even if it means incurring losses.

“In most cases, central banks make losses because they are pursuing sound monetary policies to achieve stability,” he added.