Finance Minister-Designate, Dr. Cassiel Ato Forson, says he will work to reduce the nation’s inflation to a single digit if he is approved as finance minister.
This is one of the key measures he will take to stabilizing the nation’s economy.
Dr. Forson during his vetting on Monday, January 13, 2025 highlighted the need for immediate measures to restore confidence in the economy, stressing that reducing inflation is central to stabilizing the financial sector.
His plan aims to bring inflation down to around 8%, which he believes will create a healthier economic environment for investment and growth.
“I believe if we are to introduce strong measures, particularly from the expenditure side, we will be able to bring inflation down to 8% plus or minus two. In doing so, we will be able to reopen the domestic bond market so that we can move away from the over-reliance on the treasury bill market,” Ato Forson said.
He indicated that a single digit inflation can be achieved with the introduction of a strong budget anchored on fiscal discipline and expenditure control, and reducing reliance on short-term borrowing and ease pressure on the already burdened treasury bill market.
He highlighted that reopening the domestic bond market would be key to achieving sustainable financing. This approach he said seeks to shift focus away from expensive short-term borrowing towards longer-term, lower-cost financial instruments, which would help manage the impacts of the domestic debt exchange and Eurobond challenges.
In addition to inflation control through reduced government spending, Dr. Forson plans to work with international financial institutions, such as the African Development Bank, World Bank, European Union, and the International Monetary Fund (IMF), to secure affordable financing for essential government operations.
