I find Gideon Boako’s write-up a misguided attempt to sow discord between the Finance Minister and the Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, at a time when their partnership is proving essential to Ghana’s economic recovery.
The decision to raise the policy rate to 28%, announced in the Monetary Policy Committee’s release on March 28, 2025, alongside the Finance Ministry’s fiscal efforts, reflects a united strategy, not the “policy incoherence” Boako alleges.
Let me set the record straight.
Boako’s fixation on the “artificial” drop in T-bill rates to 15.73% for the 91-day bill by March 21 misses the broader context. The Finance Minister’s push to lower borrowing costs wasn’t propaganda; it was a deliberate move to harness improving market sentiment and fiscal consolidation after the challenges of 2024.
True, rates diverged from the MPR, but this wasn’t a misstep—it was a signal of confidence, backed by IMF-supported reforms and debt restructuring. The Governor’s rate hike to 28% doesn’t contradict this; it complements it by tackling inflationary pressures, such as the 23.1% inflation rate recorded in February 2025, which fiscal measures alone cannot address. Together, they are balancing borrowing costs and price stability.
Boako’s critique of excess liquidity and the Central Bank’s response is equally narrow. The new 273-day sterilization instrument, highlighted in the MPC release, showcases Dr. Asiama’s forward-thinking leadership, not delay. Could OMO or DIPO have been used earlier? Perhaps. But Dr. Asiama, sworn in on February 25, 2025, inherited a liquidity overhang worsened by external shocks, not just domestic choices. His commitment to a “proactive and precise approach” is now evident, aligning seamlessly with the Finance Minister’s work to manage debt and expenditure. Boako’s demand for aggression overlooks the delicate equilibrium both leaders are maintaining to curb inflation without stifling growth.
The undersubscription of T-bills in the March 21 and 28 auctions isn’t a failure—it’s a market correction. Investors rejected unsustainably low yields, and the Governor’s rate hike, paired with the Finance Minister’s fiscal discipline, signals Ghana’s focus on stability over short-term optics. This isn’t disarray; it’s coordination. The Finance Minister has tirelessly rebuilt trust, securing external support and steadying the cedi, while Dr. Asiama strengthens monetary policy with tools like the Cash Reserve Ratio review and sterilization measures. Their methods differ in focus, not in purpose.
Boako’s claim of a “lack of coordination” is groundless. Both leaders’ public statements highlight their joint efforts to address structural issues like food inflation, working as a team, not in isolation. The Finance Minister isn’t dodging lessons—he’s applying them, and Dr. Asiama’s rate hike reinforces that.
Far from needing a lecture, they are demonstrating how fiscal and monetary authorities can align for Ghana’s benefit. The real lesson is for Boako: cease the sideline sniping and acknowledge the teamwork guiding Ghana through this storm.
Kwame Owusu Danso, Esq.
