Dr. Johnson Asiama with members of the Monetary Policy Committee
The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, says the central bank will maintain a cautious approach to sustaining macroeconomic stability, despite resilient economic growth and growing confidence in the credibility of its monetary policy decisions.
Speaking at the opening of the 128th Monetary Policy Committee (MPC) meeting on Monday at the Bank Square in Accra, Dr. Asiama said that although key economic indicators have improved, benefiting from favourable external conditions particularly higher gold prices, these tailwinds may not be permanent and should not be taken for granted.
He stressed that the meeting was not intended to celebrate successes but to critically analyse data and determine whether current stability could be maintained, noting that the improving outlook would test the nation’s monetary policy framework this year.
“At its core, this meeting is not about whether conditions have improved. They clearly have. It is about how we respond to that improvement and how we ensure that decisions taken today remain robust under scrutiny tomorrow. These are not mechanical choices. They require judgment, balance and a clear focus on our mandate,” he said.
The BoG Governor indicated that since the Committee’s last meeting, macroeconomic conditions have continued to improve, noting that inflation declined to 5.4 percent at the end of 2025, with expectations well anchored, while external buffers have strengthened, with gross international reserves rising to 13.8 billion United States dollars.
“Domestically, rapid disinflation has created policy space but also raises important questions and policy issues. While well-coordinated monetary and fiscal policies have supported these gains, our task is to assess the durability of these policies and calibrate policy to support growth while preserving credibility,” he noted.
Dr. Asiama also outlined four key considerations for the Committee’s deliberations. These include the pace and sequencing of any policy adjustment, particularly whether easing should proceed gradually with pauses for reassessment and clear communication to markets.
He further highlighted the importance of foreign exchange stability, noting that while the cedi remained remarkably stable in 2025, expectations would be critical in sustaining that performance.
The Governor also pointed to the role of the Domestic Gold Purchase Programme in strengthening external buffers, urging members to consider its timing, sustainability and balance sheet implications, among other factors.
By Ebenezer K. Amponsah