Professor Lord Mensah advises Central Bank to do one thing to correct the rising inflation rate

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Many consultants have expressed worry about the rising costs of goods and services in the country presently. The inflation rate which used to be single digits has become a cause for worry as March 2022 recorded 19.4% whilst April 2022 also deteriorated even further by reaching 23.6%.

Experts have forecasted that the higher inflation rate will worsen even further if care is not taken by the Central Government. Professor Lord Mensah has said that the inflation rate will correct itself if the central bank increases the policy rate to become greater than the inflation rate. According to the Academic, this measure would make the treasury bill far attractive thereby mopping funds to suppress the inflationary situation.

Currently, most investors have been discouraged from putting their funds into the treasury bill since the 16%rate of the tbill has become far lower than the 23.6% inflation rate.

Whether the Central Bank would accept this advice remains a matter for future discussions since various calls were sparked earlier when the inflation rate reached 19.4%. The Central Bank's policies seem to favour the exchange rate but not the 'inflation rate situation'.

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