AGI pledges to support the economy

February 21, 2012 No Comments

The Association of Ghana Industries (AGI) has expressed worry about the upward review of the Bank of Ghana’s policy rate from 12.5 percent to 13.5 percent.

This is expected to translate into increased base lending rates though some banks say they will not increase the rate at which they lend to the public. The largest business group, in a communique, expressed worry over the sudden depreciation of the cedi over the past few months because it could result in imported inflation.

It added that the instability of the local currency can also disturb business planning. Nana Owusu Afari is the President of the AGI.

“Interest rates may be going up as a result of the inflationary pressures the Bank of Ghana is talking about and that is not good for the manufacturing sector,” he said.

He said this has made its members uncompetitive on the global market. The AGI however pledged its support to ensure stability of the economy, despite the fact that this year is an election year.

But it urged the government to live to the pledge of ensuring macroeconomic stability. Nana Owusu Afari said the best way to restructure the manufacturing sector is through the implementation of the industrial policy.

 

From: Radioxyzonline.com

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