The approval of the new Rent Bill by the Cabinet and recommendation for consideration of Parliament and the assertion by GCB Capital that the increasing monetisation of the fiscal deficit posed an upside risk to inflation are some of the leading stories in the Ghanaian Times on Wednesday.
The Graphic reports that the Cabinet has approved a new Rent Bill and recommended same for the consideration of Parliament.
It is expected that soon, Parliament will also commence its engagements on the Bill to culminate in its successful enactment.
The Minister of Works and Housing, Francis Asenso-Boakye, made this known at a press briefing in Accra last Sunday.
The briefing was to update the media on recent developments in the housing sector.
He said the Bill sought to ensure that a landlord who demands the payment of rent “in advance for more than one month in a monthly tenancy, or a tenancy which is shorter than one month, or more than one year in a tenancy which exceeds one year, commits an offence” clearly identified in the Bill.
The Bill, the minister said, would also ensure that the rights of “vulnerable tenants” who have been out-priced by the uncontrollable hikes in the cost of renting accommodation were safeguarded.
Mr Asenso-Boakye said the existing Rent Act, 1963(Act 220) of 1963 and the Rent Control Law 1986 (PNDC Law138) had outlived their relevance due to the current population growth, urbanisation, housing availability, rental rates, housing redistribution and eviction controls, among other several attendant difficulties that have engulfed the housing sector.
“One subject area that has dominated the housing space for decades is the regulation of the rental housing market in Ghana; the existing law was passed by Parliament 59 years ago,” he observed.
The Bill, the minister noted, would, therefore, ultimately remove inherent constraints and offer incentives, which would stimulate private sector investment in the rental-housing sector.
This, he said, would ensure that property developers were not discouraged from investing in the housing industry by rigid rent control mechanisms.
The newspaper says that Investment bank, GCB Capital, has stated that the increasing monetisation of the fiscal deficit posed an upside risk to inflation.
It said unless the Monetary Policy Committee (MPC) of the Bank of Ghana sustained its aggressive monetary policy stance, the average rate at which prices increase would continue to rise on account of the huge deficit financing.
It also projected inflation to rise further to around 44 per cent in November before peaking at 45 per cent in December.
It gave the warning in its October insight on the economy released last week.
Projection
The investment firm said the expected aggressive policy tightening by the MPC was needed to moderate the impact of the liquidity injection.
“Accordingly, we expect inflation around 44 per cent in November and 45 per cent in December, with inflation potentially remaining above 40 per cent through quarter one of 2023,” it said.
The projection followed the release of October data, which showed that inflation had risen to 40.4 per cent.
GCB Capital said while the long-standing supply chain disruptions and the resultant cost pressure underscored the continuous rise in inflation, new inflationary forces had emerged.
“We believe the October inflation print reflects the impact of the major utility tariff hike that took effect in September, the cedi’s slide so far in quarter four of 2022 and the surge in petroleum prices due to the depreciation effect and the associated surge in transport fares,” it said.
The Ghanaian Times reports that Interim Ghana manager Otto Addo believes his team can make a significant impact at the World Cup in Qatar as the Black Stars prepare for their fourth finals at the global tournament.
Addo, with no previous senior coaching experience, took charge of Ghana in February after the sacking of Milovan Rajevac following their early exit from the Africa Cup of Nations.
“We can beat anyone. It’s up to the players, not me. It’s their performances that have brought them this far. They have the quality, with or without me,” Addo told the FIFA website.
“I’m responsible for putting them in the right positions so that they can produce their best performances, with and without the ball. They have to be able to play together.”
Addo, who is combining his role as talent manager at Borus¬sia Dortmund with the national team job, will lead Ghana into their Group H opener against Portugal on November 24 before they face South Korea four days later and Uruguay on December 2.
“We’re going up against three strong opponents and we could lose all three games or win all three. It’s up to us and how we adapt to their playing style, how we stop them, how we work together as a team,” Addo said.
“Every single game is different and the first match will be decisive. The subsequent games depend on the first one. If we lose, we need to be more attacking in the second match, but if not we can set ourselves up differently.”
Ghana will play Uruguay in a rematch of the controversial quarterfinal in 2010, which the South Americans won on penalties, stopping them becoming the first African team to reach a World Cup semifinal.
“I’m sure that’ll be in the back of the minds of some players because it was a decisive game, not just for Ghana but for Africa as a whole,” Addo said.
The newspaper says that petrol and diesel prices are projected to decline within the coming days, according to latest checks by the Chamber of Petroleum Consumers (COPEC).
According to the Chamber, petrol prices will likely fall to GH¢16.07 per litre from the current average of GH¢17.42 per litre while that of diesel would also reduce from GH¢23.43 per litre to an average of GH¢20.25 per litre.
A statement signed and issued in Accra yesterday by Duncan Amoah, Executive Secretary of COPEC, said, however that the price of Liquefied Petroleum Gas (LPG) was expected to be adjusted upwards.
It stated that LPG was expected to rise from GH¢12.10 per kilogramme to a likely retail price of GH¢13.51 per kilogramme.
The latest checks come ahead of the second pricing window which was expected today.
The statement noted that international benchmark for LPG had seen an increase of about $32 from $598.27 to $630.56, which could lead to an increase in retail price on current retail averages of 12.10/kg to a likely retail price of 13.51/kg.
“To this end, what it literally means is, the price of petroleum is likely to move downwards to GH¢16.07 per litre from the current average of GH¢17.42 per litre.
Same goes for diesel, as the expected retail price could decline from the current average of GH¢23.43 per litre to an average of GH¢20.25 per litre,” the statement added.
GIK/APA