Deputy Ranking Member on Parliament’s Finance Committee, Dr Gideon Boako, has expressed concern over the lack of coordination between the fiscal and monetary authorities in government.
In a Facebook post on Saturday, 29th March, he criticised the Finance Ministry’s handling of Treasury bill rates and warned that its approach was inconsistent with monetary policy decisions by the Bank of Ghana.
According to him, this disjointed approach undermines economic stability.
“When you advise the government, they won’t listen. But how do they feel now that their so-called ‘artificial’ drop-in T-bill rates—engineered for propaganda—has been undone?” Dr Boako wrote.
He noted that the Bank of Ghana had raised the policy rate by 100 basis points, from 27% to 28%, which contradicted the Finance Ministry’s recent efforts to force T-bill rates down from 29% to as low as 15% for 91-day bills.
He questioned why the Central Bank was not more aggressive in managing excess liquidity to maintain price stability.
Dr Boako commended the Bank of Ghana for its latest policy direction, which includes plans to introduce a 273-day instrument to strengthen its sterilisation measures.
“Well, at least the Governor of the Central Bank listens—unlike the Finance Minister,” he remarked.
He argued that this move would support the disinflation process, something he believes the Finance Ministry has failed to address effectively.
He further pointed to the recent undersubscription of Treasury bills in the last two auctions (21st and 28th March) as evidence of poor fiscal management.
“The finance minister must take a cue: macroeconomic management is critical to national financial stability. The ongoing policy incoherence between the Finance Ministry and the Central Bank exposes a worrying lack of coordination,” he stated.
Dr Boako urged the government to realign its fiscal policies with monetary measures to avoid further economic instability.
