Current reforms initiated by BoG would positively impact economy – Prof Botchwey
The Chairman of National Development Planning Commission (NDPC), Professor Kwesi Botchway, is confident the current reforms initiated by the Bank of Ghana would positively impact the economy. The Central Bank has this year seen the passage of a number of Bills including the BoG Amendment Act, the Depositors Protection Act, among others.
These the former Finance Minister believes would eventually help address the challenge of rising inflation, and as well, better regulate the financial sector.
He, however, wants the Central Bank to focus more on policies that would grow the economy.
“The Amendment Act will make for improvement and it is expected that these along with improvements in monetary policies operations generally will make inflation targeting work better,” he said.
Prof. Botchwey said the two other acts recently passed will further strengthen the legal framework for financial sector supervision and regulation.
He said the Banks and Specialised Deposit Taking Institutions act and the Ghana Deposits Protection act are all first important steps, “even though they may arguably be deficient technically in many respects.”
“Most importantly as regards the banking system’s unfinished agenda there needs to be something of a fundamental change int he mindset of our chief regulator of the Central bank itself,” he added.
According to him, this mindset must be different from that of the Central Bank regulator “in the conventional sense of the word more to a Central Bank that is also concerned about growth and macroeconomic stability.”