TUC calls for expansion of Bank of Ghana mandate to include job creation

The Deputy Secretary-General of the Trades Union Congress (TUC), Dr. Kwabena Otoo, has called for a review of Ghana’s economic policy framework, arguing that its current focus on inflation targeting is too narrow and limits efforts to tackle unemployment and promote inclusive growth.

Speaking on Channel One TV’s Point of View on Wednesday, April 29, he explained that Ghana’s monetary policy has largely centred on price stability, with the Bank of Ghana relying mainly on interest rate adjustments as its primary policy tool.

Dr. Otoo contended that this approach places insufficient emphasis on employment creation and broader development goals in economic management.

He noted that several countries have expanded the mandates of their central banks to include job creation alongside inflation control, allowing for a more balanced policy approach.

He cited examples such as New Zealand and the United States, where reforms have incorporated employment objectives into central banking frameworks.

According to him, Ghana must rethink its policy direction to ensure that job creation becomes a core objective of economic management alongside price stability.

Dr. Otoo warned that without such reforms, economic policy risks remaining disconnected from the country’s persistent unemployment challenges.

“The only instrument we know the Bank of Ghana has is the interest rate. Basically, inflation targeting, and that’s what they do. That means the Bank of Ghana Act must change,” he said.

He explained that inflation targeting was first adopted by the Reserve Bank of New Zealand, which initially focused solely on price stability. However, he noted that in 2019, the country amended its law to include employment generation as an additional mandate for its central bank, a move later followed by the United States and other economies.

“So the policy framework must change,” he added.

Prince Antwi

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