Dr. Ernest Addison

First Tranche Of $600 Million IMF Loan Will Go Towards Budget Support – BoG
24 May

First Tranche Of $600 Million IMF Loan Will Go Towards Budget Support – BoG

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Central Bank Governor, Dr Ernest Addison has disclosed that the first disbursement of $600 million out of the US$3 billion loan facility from the International Monetary Fund will go towards supporting government’s 2023 budget. According to him, the Bank of Ghana will credit the cedi equivalent of the amount to government in order to allow it support its budgetary programmes. “The IMF was very clear from the beginning in terms of this particular transfer, that it was specifically for the budget support. “The BoG will however benefit, when it comes to the forex inflows, this is because we will take the dollars and credit…
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DDEP: Banks Given Up To September To Submit Plans For Recapitalisation – BoG
23 May

DDEP: Banks Given Up To September To Submit Plans For Recapitalisation – BoG

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Central Bank Governor, Dr Ernest Addison, has said that all commercial banks whose capital has been affected by the Domestic Debt Exchange Programme (DDEP) will have up to September this year to submit their recapitalisation plans to the Bank of Ghana. He noted that banks are expected to approach their shareholders before the recapitalisation exercise adding that should they encounter some difficulty in doing so, they may have to seek assistance from the yet-to-be operationalised Financial Sector Stability Fund. “Right now, we have reduced the capital adequacy ratio to 10 per cent and we are hoping that over the next three years,…
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Tighter Monetary Policy Expected Under IMF Programme – Bog
19 May

Tighter Monetary Policy Expected Under IMF Programme – Bog

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The Bank of Ghana’s Monetary Policy Committee (MPC) is currently meeting to determine the country’s future monetary policy, amid calls from the International Monetary Fund (IMF) for the Bank of Ghana (BoG) to continue tightening monetary policy until inflation is firmly on a declining trajectory and to eliminate monetary financing of the budget. The impact of such a position on Ghana’s economy will be significant, with a continuation of the current policy likely leading to a further slowdown in economic growth. Since the COVID-19 pandemic, the economy has been hit hard by various shocks including currency depreciation – requiring a careful balance between policies that…
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Market Anticipates BoG MPC To Hold Policy Rate At 29.5%
16 May

Market Anticipates BoG MPC To Hold Policy Rate At 29.5%

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As inflation continues to trend downward, the market anticipates the Bank of Ghana’s Monetary Policy Committee (MPC) to adopt a policy-hold strategy at its 112th meeting this week by retaining the rate at 29.5 percent. Consumer prices slowed for the fourth month running in April 2023 to 41.2 percent year-on-year, -3.8 percent from March 2023 – thus 12.9 percent since start of the year; sustaining the disinflationary run that commenced in January 2023 following a peak of 54.1 percent in December 2022. To reinforce the pace of disinflation and re-anchor inflation expectations, the central bank’s MPC tightened financing conditions further –…
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BoG To Continue With Policy Rate Hikes To Fast Track Inflation Decline
10 May

BoG To Continue With Policy Rate Hikes To Fast Track Inflation Decline

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The Bank of Ghana (BoG) has indicated that it may hike again the monetary policy rate to help bring inflation rate down faster. The central bank argued that “the current inflation rate remains significantly above the medium-term target, warranting that tight stance is maintained going forward”. Inflation dropped to 45 percent in March 2023 from 53.6 percent and 52.8 percent in January and February 2023, respectively. The Monetary Policy Committee of the BoG, at its last meeting in March 2023, increased the policy rate by 150 basis points to 29.5 percent. Inflation rate projection The BoG had earlier told Joy…
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Increase Concessional Financing To Ghana, Others – Governor To IMF
17 Apr

Increase Concessional Financing To Ghana, Others – Governor To IMF

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The Governor of the Bank of Ghana, Dr. Ernest Addison, has urged the International Monetary Fund to consider increasing concessional financing to the continent by modifying the access thresholds, including expanding access limits and relaxing eligibility criteria for PRGT (Poverty Reduction and Growth Trust) resources. This, he believes, will ensure timely financing assistance to most vulnerable members. “It is in this context we welcome the Fund’s decision to temporarily raise the annual and cumulative limits in the General Resources Account (GRA) to 200% and 600% of quota respectively for a period of 12 months. Nevertheless, we underscore the importance of…
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FULL TEXT: BoG Governor’s Remarks At ACG Meeting With IMF Managing Director
17 Apr

FULL TEXT: BoG Governor’s Remarks At ACG Meeting With IMF Managing Director

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REMARKS BY DR. ERNEST ADDISON GOVERNOR, BANK OF GHANA ADDRESSING DEBT CHALLENGES AND ENHANCING DEBT MANAGEMENT TO IMPROVE ACCESS TO FINANCE IN AFRICA IMF HEADQUARTERS BUILDING, WASHINGTON, D.C, USA SUNDAY, 16TH APRIL 2023 Thank you, Chair. I wish to focus my intervention on addressing debt challenges and enhancing debt management to improve access to finance in Africa. But, let me first take this opportunity to express my sincere appreciation to Madam Georgieva, for the exceptional leadership and relentless efforts in exploring, to the full extent possible, resources to help member countries, especially in Africa, mitigate the adverse impact of the COVID-19 pandemic.…
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Ofori-Atta, Dr Addison In Washington To Make Final Push For $3 Billion IMF Deal
11 Apr

Ofori-Atta, Dr Addison In Washington To Make Final Push For $3 Billion IMF Deal

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The Finance Minister, Ken Ofori-Atta, the Governor of the Bank of Ghana, Dr. Ernest Addison, and other members of the economic management team are currently in Washington, D.C., to deliberate on Ghana’s pending request at the International Monetary Fund. The meeting is crucial to determining Ghana’s next step with the Fund. Ghana is currently seeking a $3 billion financial bailout from the International Monetary Fund to help the country solve its balance of payment issues and the current economic crisis. The team is attending the IMF/World Bank Spring Meetings as an all-important opportunity for Ghana to make its case and secure a deal for the…
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Bank Of Ghana Hikes Monetary Policy Rate To 29.5%
27 Mar

Bank Of Ghana Hikes Monetary Policy Rate To 29.5%

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The Monetary Policy Committee of the Bank of Ghana has announced a hike in the policy rate by 150 basis points to 29.5 percent from an earlier 28 percent announced in January this year. The decision comes after the Central Bank held its second meeting for 2023 to review economic developments in the country. Governor of the Bank, Dr. Ernest Addison explained that the hike is due to rising inflationary shocks which are expected to persist as Ghana awaits an IMF-supported programme. "Headline inflation has declined marginally for two consecutive months, but continues to remain relatively high compared to the medium-term target of 8±2…
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Central Banking In Crisis: How BoG Steadied Economic Ship To Calm Waters
16 Feb

Central Banking In Crisis: How BoG Steadied Economic Ship To Calm Waters

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FOR those old enough to remember Ghana’s economic crisis of 1982/3, the country’s closest to those ugly times came last year. In 2022 when revenue growth flattened and the borrowing window shut, what many expected was an economy without money, where salary payments will delay, imports, including fuel will shrink, businesses and consumers will face shortages, the country will default in its debt repayment and an economic chaos will set in similar to what occurred some four decades ago. But that did not happen. Public sector workers continued to receive their salaries, there was no default while goods and services…
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