Decide policy stance that reinforces disinflation path …Governor tells MPC
The Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has tasked the Monetary Policy Committee (MPC) of the BoG to decide on a policy stance that reinforces the disinflation path without undermining the recovery or destabilising market expectations.
Speaking at his first MPC meeting as the Governor of the BoG, he stressed that, the MPC must consider current domestic macroeconomic conditions and the volatile global conditions in reaching a policy stance.
“Our task over the next few days is to weigh these developments rigorously, and to reach a policy stance that reinforces the disinflation path without undermining the recovery or destabilising market expectations,” he stated.
“I trust that our discussions will be candid, evidence-based, and guided by our shared mandate of maintaining price stabil
ity and supporting sustainable growth,” Dr Asiama, who chairs the MPC, added.
The Governor also stated that the country’s strong buffers, strong reserves, improving sentiment, and the credibility of the policy framework should guide the MPC as it deliberated on the
economic developments of the country.
Additionally, Dr Asiama highlighting on the domestic economy said while inflation was easing, it remained uncomfortably high, at over 23 per cent, and progress had been slow, particularly on a month-on-month basis.
He said the structural drivers of food inflation remained persistent and that should guide the decisions of the MPC.
“Domestically, the 2024 fiscal outturn was expansionary, with the deficit exceeding programme targets. We have seen encouraging signs of consolidation early in 2025, but questions remain as to whether current measures are adequate to anchor expectations and satisfy upcoming International Monetary Fund programme reviews.
On the external environment, Dr Asiama said currently supportive was becoming increasingly volatile.
“We’ve seen a strong trade surplus and solid reserve build-up on the back of gold exports and remittance flows. But a possible escalation in global tariff wars, rising geopolitical tensions, and weakening Chinese demand could quickly shift the dynamics. These global factors could also have spillover effects on inflation, capital flows, and exchange rate stability,” he warned.
BY KINGSLEY ASARE
