T-Bills missed target: The markets will expose you when you do propaganda – IERPP tells Finance Minister

3 News

Tue 08th Apr, 2025 10:14

The Institute of Economic Research and Public Policy (IERPP), a policy think tank dedicated to social reform, sound economic management, believes that the missed targets of the T-Bills are exposing what they believe is propaganda by the Finance Minister, Dr Cassiel Ato Forson. 

Latest data from the Bank of Ghana (BoG), point out that the government has once again fallen short of its Treasury bill target, missing it by GH¢2.69 billion for the third week in a row after rejecting GH¢2.37 billion in bids, likely misaligned with its yield expectations.

According to the  the government sought to raise GH¢4.39 billion from short-term debt instruments but received bids totalling GH¢1.69 billion, resulting in an undersubscription of 61.46%.

For the 91-day Treasury bill, GH¢3.38 billion was tendered, with GH¢1.45 billion accepted. The 182-day bill saw GH¢501.17 million tendered, but only GH¢81.09 million was accepted. Meanwhile, GH¢176.26 million was tendered for the 364-day bill, of which GH¢161.26 million was accepted.

Interest rates on Treasury bills continue to trend between 15% and 18%. The 91-day yield declined by six basis points to 15.65%, while the 182-day bill fell by 23 basis points to 16.50%. The 364-day bill dipped by two basis points to 18.83%.

This is amidst the increment in policy rate from 27 % to 28% by the Monetary Policy Committee (MPC) of the Bank of Ghana (BoG).

Governor of the Bank of Ghana Dr Johnson Asiama said during the 123rd MPC press conference in Accra that the global environment has become more challenging.

Read Also:  Monetary Policy Committee of Bank of Ghana raises Policy Rate to 28%

While headline inflation has declined marginally, it remains a concern. Both food and non-food inflation are significantly above expectations, and core inflation remains elevated. While food inflation was driven largely by supply-side factors, preventing second-round effects from such increases will be essential.

“Under the circumstances, the Committee, by a majority decision, decided to raise the Monetary Policy Rate by 100 basis points to 28 percent to re-anchor the disinflation process. As inflation becomes firmly anchored, the Committee will reassess the scope for a gradual easing in the policy stance,” he said.

As a matter of urgency, IERPP suggested to the Finance Minister to align T-bill rates with the prevailing inflation rate and macroeconomic conditions.

“Your stubborn refusal to do so would have dire consequences on the economy. He who has ears, let him listen to knowledge,” the statement added.

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