Dr. Johnson Asiama
The Bank of Ghana (BoG) has hinted that it has revised its end of year inflation rate of 12% for 2025
The BoG governor, Dr. Johnson Asiama, who made this known on the sidelines of the IMF/World Bank Spring Meetings said the revised target is based on new monetary measures by the Bank of Ghana, alongside complementary fiscal actions by the government.
“Look at what is happening to the cedi, as well as the policy action taken at the last monetary policy committee meeting, that should help tackle food inflation and deliver lower inflation going forward,” he stated.
Dr. Asiama stated that the revised 12 per cent target marks a sharp cut from the earlier projection of 16 per cent for 2025 and that the Bank of Ghana will take the required actions based on its data.
Some analysts have said that the target if achieved could represent one of the lowest inflation rates Ghana has recorded in recent years which could be the lowest in four years.
Inflation slowed for the third consecutive month in March 2025, reaching 22.4 per cent, down from 23.1 per cent in February.
Some analysts now believe the bank may have to hike rates again in May, along with other monetary measures, to meet the revised target.
The IMF expects Ghana’s inflation to fall further to 9.4 per cent by the end of 2026, potentially bringing the country closer to achieving single-digit inflation for the first time in years.
In the 2025 budget, Finance Minister Dr. Ato Forson announced the government’s goal of ending the year with an inflation rate of 11.9 per cent, as part of broader efforts to stabilise the economy
In its Africa regional economic outlook, the IMF projected that Ghana would end 2025 with an inflation rate of 17.5 per cent—significantly higher than the 11.9 per cent forecast in the 2025 budget by Dr. Forson.