Dr. Johnson Asiama (M) with members of the committee
The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama has called on members of the Monetary Policy Committee (MPC) to make its decisions on outcomes of policies more transparent and accessible to earn trust especially from the public.
Dr. Asiamah who chaired his first monetary policy since assumption of office yesterday said making its decisions transparent will reduce the growing sense in public commentary that MPC decisions are taken behind closed doors without clear, data-driven reasoning.
“To counter this, I am proposing that we implement mechanisms to make the Committee’s decision factors more accessible, whether through publicly publishing voting outcomes or enhancing the narrative content of our policy statements”.
That in his view, will strengthen the banks credibility and deepen trust in the policy framework while it works to simplify the way forecasts are presented to the public to enable market participants understand the underlying policy story better.
The governor also said though the external environment is currently supportive, it is still becoming increasingly volatile with a strong trade surplus and solid reserve build-up on the back of gold exports and remittance flows.
He said that a possible escalation in global tariff wars, rising geopolitical tensions, and weakening Chinese demand could quickly shift the dynamics which could also have spillover effects on inflation, capital flows, and exchange rate stability.
“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 IMF program reviews,” he added.
He further stated that some of the challenges facing the financial sector stem from earlier monetary and fiscal policy missteps particularly, loose fiscal policy during periods of macro stress, weak monetary fiscal coordination and delays in key structural reforms.
According to Dr. Asiamah, though the challenges further contributed to elevated inflation, impaired policy transmission, and a loss of credibility, he asked the committee to desist from assigning blame and ‘reflect on issues that will strengthen institutions in order to avoid repeating past mistakes.
“I trust that our discussions will be candid, evidence-based, and guided by our shared mandate of maintaining price stability and supporting sustainable growth,” he added.
By Ebenezer K. Amponsah