The Bank of Ghana (BoG) has introduced Artificial Intelligence to reinforce its inflation forecasting framework and refine the gathering and evaluation of economic statistics.
The apex bank revealed that this transition forms a core component of its broader integration of advanced modelling systems and big data technologies.
First Deputy Governor Dr Zakari Mumuni disclosed the development whilst addressing delegates at the 4th Annual Statistics and Data Science Conference held in Tamale.
He clarified that these digital mechanisms are enabling the central bank to refine its projections and deliver sounder insights to guide monetary policy choices. He noted that the integration of AI alongside other analytical frameworks has enhanced the precision of its inflation estimates, particularly those formulated prior to the publication of official statistics.
“We also employ machine-learning models to complement standard econometric models in forecasting GDP and performing text-mining analytics.”
“Where supervisors previously relied heavily on static monthly spreadsheets requiring manual reconciliation, increasingly granular data can be validated as it arrives, allowing risks to be identified earlier.”
Dr Mumuni observed that the institution relies on econometric methods and its internal Quarterly Projection Model to examine financial trends and direct strategic decisions. However, he maintained that high-tech systems can never fully supplant human discretion within economic governance.
“Through econometric techniques and our Quarterly Projection Model within a Forecast and Policy Analysis System, we identify emerging trends, assess risks and consider the likely outcomes of different policy choices.”
“Technology can strengthen our intelligence, but it does not remove the need for human judgment.”
Furthermore, he emphasized that the regulator maintains its commitment to gathering ground-level data straight from local traders and enterprises nationwide.
“Long before a survey appears in a published report, our Research Department staff are in markets across the country—including here in Tamale—tracking prices and conducting business and consumer confidence surveys.”
“It means staff spending nights away from home so that when the Monetary Policy Committee sits, it reasons from the country’s economic experience, not Accra’s alone,” he added.
Dr Mumuni concluded by appealing to analysts and data specialists to ensure emerging tools reinforce, rather than displace, rigorous statistical standards.
“New data should complement—not replace—properly weighted and nationally representative measures.”
“Researchers should understand the questions confronting policymakers, while policymakers should remain open to researchers who ask uncomfortable questions of the data.”
By: Rainbowradioonline.com/Ghana
