Member of Parliament for Tano North, Dr. Gideon Boako, has criticised current monetary conditions as he contributed to the 2026 Budget debate, arguing that excessive tightening by the Bank of Ghana has weakened consumer spending and slowed economic activity.
Dr. Boako claimed that the central bank’s actions have withdrawn significant resources from the economy.
“GH¢62 billion that should have been available in the pockets of Ghanaians to spend this year has been siphoned to the Bank of Ghana,” he stated on the floor of Parliament.
He insisted that the economy would have performed the same without the central bank’s aggressive tightening stance.
“I dare say that without them we were still going to achieve the same results anyway,” he told Parliament.
According to the MP, constrained liquidity is already visible in the marketplace. He described scenes of traders “sitting by their products in the scorching sun with potential buyers walking around without buying,” saying it reflects the direct impact of limited disposable income on demand.
Dr Boako observed that, despite the country experiencing a food glut and an adequate supply of goods, many items remain unsold because consumers simply lack the purchasing power.
He questioned why goods that ordinarily rise in demand as incomes increase continue to sit on shelves. “Why would these goods still be glutted on the market without buyers if individuals have money in their pockets?” he asked.
He called on the government to take immediate steps to ease the squeeze on households and businesses.
“The government must release this money into the economy with speed to enable people to have the money to spend,” he said, urging swift measures to restore liquidity and stimulate demand.
