Dr. Gideon Boako, Member of Parliament for Tano North, has voiced strong concerns about the measures used by the government to achieve single-digit inflation, arguing that they have come at a heavy cost to households and the broader economy.
Speaking during the 2026 Budget debate, Dr. Boako criticized the government’s reliance on sterilisation and aggressive fiscal consolidation to curb inflation. “I dare say that without these measures, we were still going to achieve the same results anyway,” he remarked.
Citing budget data, the MP highlighted that the Bank of Ghana sterilized GH¢62 billion in 2024 through Open Market Operations and foreign exchange auctions. He argued that this effectively drained liquidity from ordinary Ghanaians. “GH¢62 billion that should have been available in the pockets of Ghanaians to spend this year has been siphoned to the Bank of Ghana,” he stated.
Dr. Boako warned that the effects of tight monetary policies would be particularly noticeable during the Christmas season. “Traders will just be sitting by their products in the scorching sun with potential buyers walking around without buying,” he said. He explained that despite a glut of food and adequate supply of goods, low disposable income is preventing people from making purchases.
The MP questioned why goods with positive income elasticity of demand remain unsold. “Why would these goods still be glutted on the market without buyers if individuals have money in their pockets?” he asked.
He concluded by urging the government to release liquidity into the economy promptly to enable people to spend. “The government must release this money into the economy with speed to enable people to have the money to spend,” Dr. Boako emphasized.
Source: Thepressradio.com
