An advisor at the Bank of Ghana, Dr. John Kwabena Kwakye, has attributed Ghana’s recent macroeconomic stability to the strong coordination between fiscal and monetary policies, describing the approach as a key factor behind the country’s improving economic outlook.
According to him, the government’s commitment to fiscal prudence, coupled with the Bank of Ghana’s disciplined monetary policy, has helped restore confidence in the economy while supporting efforts to strengthen the country’s foreign exchange reserves.
Speaking on the Citi Breakfast Show on Thursday, July 23, Dr. Kwakye said the close alignment between the country’s fiscal and monetary policies over the past year and a half has delivered significant gains, particularly in maintaining stability after years of economic challenges.
Dr. Kwakye noted that the disciplined approach marks a departure from previous periods when weak coordination between fiscal and monetary policies often undermined economic management.
“One thing we have observed in the past one and a half years is the alignment between fiscal policy and monetary policy and that has helped us to achieve the kind of stability that we have had. Fiscal discipline and monetary discipline have been strong.
“Under the IMF programme so far, the Bank of Ghana is no longer doing anymore financing of the budget, and if you look at the budget, revenue has fallen short of the target by about 5 percent but if you look at the expenditure side, it has been compressed by 20 percent below the budget and this is a government strategy to build reserves.”
Explore the world of impactful news with CitiNewsroom on WhatsApp!
Click on the link to join the Citi Newsroom channel for curated, meaningful stories tailored just for YOU:
https://whatsapp.com/channel/0029VaCYzPRAYlUPudDDe53x
No spam, just the stories that truly matter! #StayInformed #CitiNewsroom #CNRDigital
