The Bank of Ghana (BoG) has reaffirmed that its monetary policy decisions will remain data-driven, despite fluctuations in global commodity prices.
Governor Dr Johnson Pandit Asiama assured that the central bank is taking measures to stabilise the cedi, restore macroeconomic confidence, and bolster Ghana’s external reserves.
During a briefing at the Parliament House, Dr Asiama addressed the Parliamentary Committee on Economy and Development on the bank’s 2025 Monetary Policy Report.
He noted that the bank will adopt a prudent and disciplined approach to monetary policy, guided by data-driven insights.
“I appreciate the continued engagement of Parliament on issues of monetary policy, financial stability, and the broader health of the Ghanaian economy. The Bank of Ghana will therefore continue to pursue a prudent, disciplined, and data-driven approach to monetary policy.”
He informed the MPs that when he assumed office in February 2025, “the Ghanaian economy was emerging from one of the most challenging periods in recent history. The country had experienced a sovereign debt restructuring, sharp currency depreciation, and a surge in inflation. Although stabilisation efforts were already underway, the starting conditions remained fragile.”
According to him, headline inflation ended 2024 at 23.8 per cent, well above the bank’s target of 8 ± 2 per cent, while the Ghanaian cedi had depreciated 24.8 per cent over the year.
As part of efforts aimed at stabilising the economy, the bank, he said, implemented a series of coordinated policy measures, including maintaining a tight monetary policy stance, addressing excess liquidity, and strengthening external buffers and the foreign exchange framework, among others.
“Headline inflation fell from 23.8 per cent in December 2024 to 5.4 per cent by December 2025 and further to 3.3 per cent in February 2026, one of the lowest readings recorded in recent history.”
He stated that the Ghanaian Cedi had appreciated significantly, reflecting improved fundamentals, while the Monetary Policy Rate was reduced by 900 basis points to 18 per cent, easing borrowing conditions. Gross international reserves increased to US$13.8 billion, providing about 5.7 months of import cover.
“For ordinary Ghanaians, the real measure of success is simple: prices are stabilising, the cedi is steadier, and the economy is moving back toward normal.”
He went on to state that “Capital adequacy improved to 17.5 per cent, asset quality has also improved, and banks now have a clear roadmap to reduce NPLs toward 10 per cent by end-2026,” he said, adding that liquidity remains robust with total assets rising from GH₵368 billion to GH₵447 billion and deposits increasing from GH₵276 billion to GH₵325 billion.
“Taken together, these indicators show that the banking system today is liquid, solvent, and profitable and increasingly positioned to support Ghana’s economic recovery.”
He also admitted that the bank was aware of the risks in the global environment.
“We remain mindful of risks in the global environment, including shifts in financial conditions and commodity price volatility. The Bank of Ghana will therefore continue to pursue a prudent, disciplined, and data-driven approach to monetary policy.”
On his part, the Hon. Dr Eric Afful, Chairman of the Committee and MP for Amenfi West, commended the central bank.
“The Committee is satisfied with the Governor’s frank discussions and urges continued engagement with Parliament to curb misinformation and disinformation,” he said.
By: Rainbowradioonline.com/Ghana