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Vice-President Dr. Mahamadu Bawumia has declared in his submission at the Town Hall meeting with the Economic Management Team held at the College of Physicians and Surgeons that inflation rate of Ghana has dropped steadily from December 2016 to January 2019.

He affirmed the inflation rate dropped from a double digit to a massive single digit which has for the past six years been the lowest in the history of Ghana.

To him this has translated into a reduction in low term rates, making lending rates fall from an average of 32% to 27% in 2018.

“Inflation has dropped steadily from the high of 15.4% at the end of 2016 to 9% at the end of January 2019. This is the lowest we have seen in the last six years. The study disinflation process provided scope for significant monitory policy aces. The Bank of Ghana’s monitory policy rate has been cut by a cumulative 950 basis point or 9.5% to you and I, between 2017 and 2019, 9.5% reduction in the bank of Ghana monitory policy rate,” he said.

In the speech of the Vice-president, he stressed the additional borrowing has not added significantly to the debt service obligation as a percentage of GDP, and this by him is a good debt management.

“The rate of debt accumulation is at its lowest in the last decade although in absolute term interest payment have increased over the last two years with much better debt management interest payment as a percentage of GDP have gone down from 6.9% in 2016 to 5.6% of GDP in 2018 and therefore the debt burden of interest payment have declined,” he added.