The Bank of Ghana Governor Dr. Johnson Asiama has stated that the country is poised to enter a period of sustained price stability, citing improvements in inflation, monetary policy, and structural reforms.
Addressing the 127th Monetary Policy Committee (MPC) meeting, Dr. Asiama revealed that headline inflation is currently at 8.0%, with core inflation measures ranging between 5–7%.
He therefore projected that inflation is likely to settle between 4–6% by the end of the year and stabilise around the target band in 2026.
“This is the strongest set of initial conditions for an MPC meeting that we have had in several years,” Dr. Asiama said. “The moderation in money supply growth, coupled with high real interest rates, has anchored inflation expectations. This provides the foundation for a carefully calibrated easing of interest rates while protecting the gains we have made in controlling inflation.”
The Governor attributed the positive trajectory to a combination of disciplined fiscal management, prudent monetary policy, and structural reforms, particularly improvements in the foreign exchange market and the rebuilding of external buffers.
Dr. Asiama noted that the economy is gradually moving from recovery to expansion, supported by strong performance in non-oil sectors, agriculture, and services.
He said high-frequency indicators, such as the Composite Index of Economic Activity, point to continued growth, while both business and consumer sentiment remain firmly positive.
Looking ahead, he cautioned that global risks remain, including commodity price swings, geopolitical tensions, and tighter external financial conditions. “Domestically, pressures around taxes, utility costs, and credit affordability could also weigh on business activity”.
“Ghana’s macroeconomic path is stabilising, and the foundations for sustained growth are strengthening,” Dr. Asiama said. “Our task now is to protect this stability while supporting the real sector’s recovery. Policy decisions must reinforce confidence, signal predictability, and keep the economy on its path toward higher, job-rich growth.”
With inflation expected to settle within the target range, Ghana could be entering a multi-year period of price stability, providing a favorable environment for investment, business expansion, and job creation.
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