Bank of Ghana Governor Dr. Johnson Asiama has revealed that the Central Bank is now targeting an end-year inflation rate of 12 per cent for 2025.
Speaking to JoyBusiness on the sidelines of the IMF/World Bank Spring Meetings, he said the revised target is based on new monetary measures by the Bank of Ghana, alongside complementary fiscal actions by the government.
“Look at what is happening to the cedi, as well as the policy action taken at the last Monetary Policy Committee meeting—that should help tackle food inflation and deliver lower inflation going forward,” he stated.
Dr. Asiama confirmed that the next Monetary Policy Committee (MPC) meeting is scheduled for May 22, 2025. “I can assure you that the Bank of Ghana will take the required actions based on our data,” he added.
The revised 12 per cent target marks a sharp cut from the earlier projection of 16 per cent for 2025.
If achieved, it could represent one of the lowest inflation rates Ghana has recorded in recent years. Some analysts suggest it could be the lowest in four years.
Inflation slowed for the third consecutive month in March 2025, reaching 22.4 per cent, down from 23.1 per cent in February.
This trend has reinforced expectations that inflation could continue to ease in the months ahead.
At its last meeting, the MPC raised the policy rate by 100 basis points to 28 per cent in an effort to curb inflation.
Some analysts now believe the Bank may have to hike rates again in May, along with other monetary measures, to meet the revised target.
The International Monetary Fund has also backed further tightening of monetary policy.
In a statement following Ghana’s staff-level agreement with the IMF, the Fund noted, “The ensuing tightening in the monetary policy stance, together with the ongoing fiscal consolidation, is expected to bring inflation down.”
In its Africa Regional Economic Outlook, the IMF projected that Ghana would end 2025 with an inflation rate of 17.5 per cent—significantly higher than the 11.9 per cent forecast in the 2025 Budget by Finance Minister Dr. Ato Forson.
The IMF expects Ghana’s inflation to fall further to 9.4 per cent by the end of 2026, potentially bringing the country closer to achieving single-digit inflation for the first time in years.
In the 2025 Budget, Dr. Forson announced the government’s goal of ending the year with an inflation rate of 11.9 per cent, as part of broader efforts to stabilise the economy.
However, some economists, including Professor Peter Quartey, have described the government’s inflation target as overly ambitious.
He argued that, given the current economic challenges, achieving that goal may be difficult.
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