Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, says Ghana is entering a period of sustained price stability even as businesses continue to grapple with high taxes, utility tariffs and expensive credit.

Opening the 127th Monetary Policy Committee (MPC) meeting in Accra on Monday, November 24, Dr Asiama noted that a sharp slowdown in money supply growth has helped anchor inflation. Real interest rates, he said, remain elevated, creating room for a cautious reduction in policy rates. Inflation is projected to fall to between 4–6% by the end of the year and stay within target through 2026.

Despite these gains, the Governor cautioned that global uncertainty—driven by volatile commodity prices, geopolitical tensions and tighter external financing—poses ongoing risks. Domestically, he acknowledged that many firms still feel the pressure of taxes, rising utilities and credit costs, which continue to weigh on business performance despite improving sentiment.

Dr Asiama outlined three priority focus areas for this quarter’s MPC deliberations:

1. Disinflation and Real Interest Rates

He said inflation is declining faster than earlier expected, pushing real interest rates upward. While the data suggests scope for monetary easing, he stressed the need to protect policy credibility and preserve recent inflation gains.

2. FX Market Reforms and Reserve Management

The Governor reported that the revised foreign exchange operations framework has enhanced transparency and efficiency. However, he underscored the need for broader public awareness and more diversified reserve assets to reduce exposure—particularly to gold-linked concentration risks.

3. Financial Sector Stability and Credit Transmission

According to him, the banking sector remains broadly stable, though a few institutions still face asset quality and recapitalisation challenges. Strengthening the credit transmission channel, he added, is vital to sustaining Ghana’s growth momentum.

Economic data presented at the meeting shows a stronger-than-expected performance for the quarter. The economy expanded by 6.3% in the first half of the year, driven by services and agriculture, while non-oil GDP grew by 7.8%. High-frequency indicators support this trend, with the Composite Index of Economic Activity rising about 9% and business and consumer confidence holding firm.

These developments, Dr Asiama said, indicate that the negative output gap is closing and that Ghana is shifting from recovery into expansion. He attributed the progress to consistent fiscal discipline, a prudent monetary stance, and structural reforms including FX framework improvements and reserve rebuilding efforts.

He added that the 2026 Budget reinforces this trajectory, prioritising job creation and broad-based economic growth.