TUC calls for overhaul of Ghana’s inflation-focused economic policy

The Trades Union Congress (TUC) has urged government to rethink Ghana’s heavy reliance on inflation targeting, arguing that the narrow policy focus undermines job creation and inclusive growth.

Speaking on Channel One TV’s Point of View programme on April 29, TUC Deputy Secretary-General Dr. Kwabena Otoo said the Bank of Ghana’s primary reliance on interest rate adjustments to control inflation leaves critical development goals, particularly employment, neglected.

“An inflation-only approach does not adequately address the country’s unemployment challenges,” Dr. Otoo stated.

He cited international examples where central banks have successfully broadened their mandates to balance price stability with employment objectives. Dr. Otoo noted that New Zealand’s Reserve Bank – which originally pioneered single-mandate inflation targeting – adopted reforms in 2019 to include job creation as a core objective. The United States Federal Reserve System has since taken similar steps.

Dr. Otoo argued that Ghana should restructure its policy framework to make employment generation a formal goal alongside inflation control. He suggested that achieving this would likely require amending the legal provisions governing the Bank of Ghana.

Without such reforms, he warned, economic policy will continue to fall short in tackling unemployment and delivering broad-based development.

The call adds to growing debate over whether Ghana’s monetary policy regime is fit for purpose amid persistent joblessness and slow industrial growth.