BoG Governor Advocates for Regular Engagements with Ghana’s Industrial Sector

Accra: The Governor of the Bank of Ghana, Dr. Johnson Asiama, has emphasized the need for regular interactions with the Association of Ghana Industries (AGI) to enhance policy formulation aimed at fostering economic growth.According to Ghana News Agency, Dr. Asiama highlighted the importance of obtaining feedback from industry stakeholders to refine policies effectively. During a meeting with AGI members, he underscored the significance of the AGI Corporate Forum as a platform for data-driven and solution-focused dialogues, which are essential for unlocking sustainable capital flows and private investments.The meeting served as a valuable opportunity to discuss how policy and industrial efforts can align to ensure stability, sustain growth, and create shared opportunities. Dr. Asiama also provided insights into the economic outlook and policy directions that will guide the nation's industrial sector as it progresses through its economic journey.Dr. Asiama acknowledged that Ghana's economic recovery is ongoing but noted that the country is on a credible path towards progress. He emphasized the importance of building an economy that is not only recovering but also rising with a clear purpose. He further commented on the value of trust in global finance, which is earned through consistency, transparency, and reform-minded leadership.The recent appreciation of the cedi, according to Dr. Asiama, is a sign of confidence and reflects improvements in various areas, including easing inflation, a tight monetary policy stance, fiscal consolidation, and reserve accumulation. He stated that the Bank of Ghana's goal is to create a policy environment conducive to market stability rather than targeting exchange rates.Dr. Asiama reiterated the need for sustained confidence, long-term investment mobilization, and development financing without regression. He called on industry leaders to partner with the government as the country implements reforms in financial intermediation, public sector efficiency, and the investment climate.Regarding monetary policy, Dr. Asiama mentioned that the Committee unanimously voted to maintain the policy rate at 28 percent. This decision reflects the continued commitment to consolidate inflation gains and anchor inflation expectations. He acknowledged the challenges posed by high-interest rates for businesses but assured that this situation is not permanent. The Bank aims to decisively reduce inflation to create favorable conditions for lower lending rates.Dr. Asiama expressed his vision of achieving price stability, which would lead to affordable credit, long-term planning, and real investment. He aims to see lending rates move toward 10 percent in the medium term as inflation stabilizes. The Bank is also enhancing liquidity management through more dynamic open market operations to improve monetary policy implementation.He emphasized the importance of maintaining discipline to achieve sustainable stability, which is crucial for industry growth in a low-inflation, low-interest-rate environ ment. However, he noted that transformation requires close collaboration with the private sector.Dr. Humphrey Ayim-Darke, President of AGI, acknowledged the significant role of the private sector and businesses in driving economic growth. He noted that the meeting occurred at a time when the economy was showing resilience and recovery. Recent macro-economic indicators such as declining inflation, stabilizing exchange rates, and renewed confidence in the economy indicate a positive trajectory, offering cautious optimism. Dr. Ayim-Darke stressed the need to consolidate these gains and translate them into tangible benefits for businesses, workers, and households.