BoG to maintain data-driven monetary policy to stabilise Ghana’s economy – Asiama

The Bank of Ghana has reaffirmed that its monetary policy decisions will continue to rely on economic data as it works to stabilise the cedi, rebuild macroeconomic confidence, and strengthen the country’s external financial buffers.

Governor Johnson Pandit Asiama made the statement on Monday while presenting the central bank’s 2025 Monetary Policy Report to the Parliamentary Committee on Economy and Development at Parliament House.

During the briefing, Dr. Asiama emphasised the importance of continued collaboration between Parliament and the central bank on issues related to monetary policy, financial stability, and the overall performance of the economy. He assured lawmakers that the Bank of Ghana would maintain a cautious, disciplined, and evidence-based approach to policy decisions.

Reflecting on the economic conditions when he assumed office in February 2025, the governor said Ghana was recovering from one of its most difficult economic periods. The country had gone through sovereign debt restructuring, significant currency depreciation, and rising inflation, leaving the economy in a fragile state despite ongoing stabilisation efforts.

By the end of 2024, inflation stood at 23.8 percent, well above the central bank’s target range of 8 ± 2 percent. During the same period, the Ghanaian cedi had weakened by 24.8 percent against major currencies.

To address these challenges, the central bank implemented several policy measures. These included maintaining a tight monetary policy stance, reducing excess liquidity within the financial system, and strengthening foreign exchange reserves and the broader exchange rate framework.

According to Dr. Asiama, these strategies have begun producing positive results. Headline inflation declined from 23.8 percent in December 2024 to 5.4 percent by December 2025, and further dropped to 3.3 percent in February 2026—one of the lowest levels recorded in recent years.

He also noted that the Ghanaian cedi has appreciated significantly as economic fundamentals improved. Additionally, the Monetary Policy Rate was lowered by 900 basis points to 18 percent, helping ease borrowing conditions. Ghana’s gross international reserves also rose to about 13.8 billion US dollars, equivalent to roughly 5.7 months of import cover.

Dr. Asiama said these developments have translated into tangible improvements for citizens, with price levels stabilising and the currency showing stronger performance.

He further highlighted progress in the banking sector. Capital adequacy has increased to 17.5 percent, while asset quality has improved. Banks are also working toward reducing non-performing loans to about 10 percent by the end of 2026. In addition, liquidity within the banking system remains strong, with total banking sector assets rising from GH₵368 billion to GH₵447 billion, and deposits growing from GH₵276 billion to GH₵325 billion.

Overall, the governor said the banking sector is currently stable, liquid, and profitable, placing it in a stronger position to support Ghana’s economic recovery.

However, he cautioned that external risks still exist, including global financial uncertainties and fluctuations in commodity prices. For that reason, the Bank of Ghana will continue to adopt a careful and data-driven policy approach.

Meanwhile, Eric Afful, who chairs the Parliamentary Committee on Economy and Development, commended the central bank for its transparency. He encouraged continued engagement with Parliament to help counter misinformation and improve public understanding of economic policies.