Economic stability achieved in shorter period came at a cost — Joe Jackson on BoG losses

Financial analyst Joe Jackson has defended the Bank of Ghana (BoG) over losses recorded from its recent market operations, arguing that the costs were necessary to restore macroeconomic stability.

Speaking on TV3’s Ghana Tonight on Tuesday, May 5, 2026, Jackson said the central bank’s aggressive measures to curb inflation and stabilise the exchange rate were deliberate and essential, despite the financial impact.

He noted that the benefits of rapidly reducing inflation often outweigh the associated costs.

“We needed to bring down inflation and stabilise the exchange rate. The approach was aggressive, but it delivered the stability we required within a shorter period, and that always comes at a cost,” he said.

The Bank of Ghana has faced criticism, particularly from the Minority, following reports of significant losses linked to its monetary policy interventions aimed at mopping up excess liquidity.

However, Jackson maintained that such outcomes are typical of decisive policy actions, stressing that every economic intervention carries a cost.

“Every policy has a cost, and this is one we can absorb,” he stated.

He argued that the central bank’s strategy has produced key gains, including lower inflation, reduced interest rates, and a decline in government borrowing costs.

According to him, much of the criticism reflects hindsight, with some questioning whether the pace of the policy tightening was too aggressive.

“In many ways, we are looking back and suggesting the Bank was too aggressive, but the question is whether that level of action was necessary to restore stability—and the answer is yes,” he added.

Jackson insisted that the broader outcome—improved macroeconomic stability—justifies the cost incurred by the central bank.