Addison Was Dreaming; International Economist On BoG’s Forecasted Inflation Deceleration

Steve Hanke, an economist with Johns Hopkins has stated that Ghana’s Central bank Governor, Ernest Addison was being delusional when he said the country’s Monetary Policy Committee (MPC) could foresee a deceleration in the inflation rate.

“Addison was dreaming”, he said, referencing the statement that justified the Bank of Ghana’s decision to maintain the Monetary Policy rate at 19.0% in July 2022.

The international economist in July reacted to the projection of the Central bank, describing it as a “spoiler alert”.

“Bank of Ghana’s Governor Ernest Addison says Ghana is seeing a “deceleration” in inflation. SPOILER ALERT: Addison is delusional. Today, I measure GHA’s inflation at a stunning 52%/yr—nearly 1.8x the phoney official rate”, he said in a tweet.

The Monetary Policy rate was however reviewed and increased to 22% in August after an emergency MPC meeting.

Currently, Ghana has pegged its inflation rate at 31.7% but Hanke found it to be 80.52%.

Source: Fuseini

Leave a Reply

Your email address will not be published. Required fields are marked *