The Bank of Ghana (BoG) has reassured the public that inflation is steadily moving toward manageable levels, signaling growing confidence in the country’s macroeconomic stability and the effectiveness of its monetary and fiscal policies.
Speaking at the 127th Monetary Policy Committee (MPC) press briefing, BoG Governor Dr. Johnson Pandit Asiama said headline inflation, which soared to 23.5% in January 2025, has eased to the bank’s central target of 8.0% as of October. “The decline has been broad-based, with both food and non-food inflation currently in single digits. And let me say, this is the first time since July 2021,” the Governor emphasized.
Dr. Asiama attributed the sustained disinflation to a combination of tight monetary policy, disciplined fiscal management, a relatively stable currency, and improved food supply. He noted that the bank’s core inflation measure, which excludes energy and utility costs, has also moderated, reflecting a significant reduction in underlying inflationary pressures.
“Price expectations by consumers, businesses, and the banking sector for the next year signal well-anchored inflation expectations. Our latest near-term forecasts show that inflation will continue to decline and settle between 6 to 8% by the end of the year,” the Governor said.
The decline in inflation comes amid steady GDP growth, with Ghana recording 6.3% growth in the first half of 2025. Preliminary figures from the Ghana Statistical Service indicate provisional growth of 5.1% in August, compared to 4.9% in the same month last year, driven largely by the services and agriculture sectors.
The Bank of Ghana has also noted improvements in private sector credit growth, rising to 5.4% in October from a contraction of 7.1% in May 2025, reflecting a gradual recovery in lending. The central bank’s efforts, including high real interest rates and disciplined fiscal consolidation, have supported these positive trends.
Dr. Asiama’s assurances come against the backdrop of strong fiscal discipline, with the government recording a fiscal deficit of just 1.5% of GDP over the first nine months of 2025, well below the target of 3.2%. Public debt has also declined to 45% of GDP from 61.8% at the end of 2024, thanks to effective debt management and a strengthening local currency.
The Bank of Ghana indicated that it will continue monitoring incoming data closely, especially inflation trends, currency stability, and credit flows, before making further policy adjustments. The MPC’s next meeting is scheduled for January 26–28, 2026, and markets will be watching closely to see how the central bank balances growth-supporting measures with its price stability mandate.
