The Central Bank Governor, Dr Abdul Nashiru Issahaku has resigned. Citi Business News has gathered his resignation takes effect from the 1st of April, 2017.
It’s unclear what led to his resignation but the Governor is reported to have cited personal reasons for the move. Dr. Issahaku was appointed Governor of the Bank of Ghana by former President, John Mahama in April, 2016 after his predecessor Dr. Henry Wampah resigned. Upon his appointment, he had battled to stem rising inflation and a depreciating cedi and introduced the auctioning of dollars to deal with the cedi’s poor performance against major foreign currencies among others.
In his last MPC press conference with Business Editors, he expressed optimism that the cedi’s performance would improve. During that meeting he also announced a 200 basis point cut in the bank’s policy rate which he attributed to a drop in inflationary trends among others. “The Committee noted that underlying inflation pressures have eased considerably and inflation is projected to trend downwards the medium term target of 8 plus or minus 2 percent,” he said. He added, “Recent developments in inflation imply money increasing tightening, consequently the MPC has decided to reduce the policy rate by 200 basis points to 23.5 percent.”
The outgoing Governor further noted that, the confidence of an improved inflation and indication of low growth warranted a reduction of the policy. “However there are indications that growth is likely to remain significantly below potential which alongside an improved inflation outlook, provides some scope for monetary policy easing.” This is the second time that the MPC has reduced the policy rate after keeping it unchanged at 26 percent for a greater part of 2016.
The policy rate is the rate at which commercial banks borrow from the central bank for onward lending to their customers.