Despite Covid-19, interest rates are lower today than they were in 2013-2016 – Bawumia
Vice President Dr Mahamudu Bawumia said that despite the devastating impact of the Covid-19 pandemic on the economy, interest rates are now lower than they were 2013 to 2016.
According to the Vice President, between 2013 and 2016, inflation averaged 15.9%. However, between 2017 and 2021, inflation averaged 10.4% despite the impact of Covid-19.
He said this while addressing TESCON members on Thursday, April 7 at the Pentecost Convention Centre, Millennium City, Kasoa Yesukrom.
During his remarks, the Vice President said that global inflation is on the rise and that many advanced economies such as the UK and the US are experiencing their highest inflation rates in 30 and 40 years respectively. , due to various factors, including the Russian-Ukrainian crisis and the Covid. -19 pandemic. He further acknowledged that African countries including Ghana and Nigeria have not been spared by these factors.
“Indeed, the data shows that in the UK and the US for example, inflation is accelerating to three to four times its rate in 2019 (pre-Covid). In Ivory Coast, inflation is accelerating to five times its pre-Covid-19 rate In Nigeria and Ghana, inflation is accelerating to 1.3 to 2 times its pre-Covid-19 rate. Inflation in Ghana has been similar to other countries following the Covid pandemic,” he noted.
The Vice President said that notwithstanding the above factors, interest rates are lower today than they were during the 2013-2016 period.
Dr. Bawumia said that in response to the recent rise in inflation, the Bank of Ghana raised the policy rate by 2.5% from 14.5% to 17.0%.
He explained that prior to Covid-19, “the steady process of disinflation provided scope for significant monetary policy easing. January 2017 and January 2021.
Dr. Mahamudu Bawumia acknowledged that the country is currently going through challenges.
“The economy is what we feel in our pockets. I recognize that we are going through difficult times, it is the reality. Our economy is experiencing rising prices for fuel and virtually every commodity. Prices are on the rise. »
However, he indicated that certain measures have been introduced by the government to deal with the difficulties currently experienced.