Accra: Dr. Johnson Asiama, Governor of the Bank of Ghana, has urged members of the Monetary Policy Committee (MPC) to closely consider a potential shift in inflation expectations as they commenced their meeting. He emphasised the importance of maintaining a strong focus on forward-looking risks, policy trade-offs, and providing credible guidance to the market.
According to Ghana News Agency, addressing the committee at Bank Square in Accra, Dr. Asiama highlighted the significant progress Ghana had made in achieving economic recovery and stability. These advancements, he noted, included a strengthening disinflation process, with headline inflation declining for six consecutive months to 13.7 per cent in June 2025. He said the disinflation marked the lowest rate since December 2021 and was attributed to disciplined monetary and fiscal policy management and the appreciation of the cedi.
The Governor also stressed that economic activity had seen a significant pick-up, with provisional GDP data for the first quarter of 2025 indicating real growth of 5.3 per cent. The Bank's Composite Index of Economic Activity, he said, rose by 4.4 per cent in May, supported by robust consumption, increased trade volumes, cement sales, and a rebound in tourism. He said Ghana's external sector conditions had markedly improved, recording a provisional trade surplus of US$5.6 billion in the first half of the year.
Despite these positive developments, Dr. Asiama cautioned the committee on potential risks such as a resumption of exchange rate volatility, crude oil price increases, and the potential impact of some taxes to be imposed within the context of the mid-year budget review on pricing behaviour. He stressed that these factors could cause a shift in inflation expectations.
The Governor reminded the MPC that their mandate is clear: 'to maintain price stability while enabling the conditions for inclusive and sustainable growth.' He encouraged a strong focus on forward-looking risks, policy trade-offs, and the need to provide credible guidance to the market.
