The Bank of Ghana (BoG) has reaffirmed its commitment to a strict, data-driven monetary policy framework as it seeks to cement the country’s economic rebound, build resilience, and shield the economy from external shocks.
Governor Dr. Johnson Pandit Asiama provided a comprehensive update on the central bank’s strategy and performance on Monday while presenting the 2025 Monetary Policy Report to the Parliamentary Committee on Economy and Development.
Dr. Asiama assured lawmakers that the central bank would maintain a “cautious, disciplined, and evidence-based approach” to policymaking. He stressed the need for continued collaboration with Parliament to ensure transparency and alignment on issues of monetary policy, financial stability, and overall economic management.
A Remarkable Turnaround in Key Indicators
Reflecting on the challenging landscape when he took office in February 2025, Dr. Asiama noted that Ghana was emerging from a severe economic crisis characterized by sovereign debt restructuring, rapid currency depreciation, and high inflation.
However, the stringent measures implemented by the Bank have yielded significant results. The Governor reported that headline inflation, which stood at 23.8% in December 2024, plummeted to 5.4% by December 2025. It has since fallen further to 3.3% as of February 2026, marking one of the lowest levels recorded in recent years and moving comfortably below the central bank’s medium-term target band.
This stabilization has had a direct impact on the currency. According to Dr. Asiama, the Ghanaian cedi has appreciated significantly as macroeconomic fundamentals have improved. Consequently, the Monetary Policy Rate (MPR) has been slashed by a cumulative 900 basis points to 18%, easing borrowing costs for businesses and individuals.
External Buffers and Banking Sector Health
The recovery has also strengthened the nation’s financial defense mechanisms. Ghana’s gross international reserves have risen to approximately US$13.8 billion, providing an import cover of roughly 5.7 months—a crucial buffer against global market volatility.
Dr. Asiama highlighted that the banking sector is now “stable, liquid, and profitable.” Capital adequacy has improved to 17.5%, while asset quality is on the rise. Banks are actively working to reduce non-performing loans (NPLs) to about 10% by the end of 2026. The sector’s total assets have grown from GH₵368 billion to GH₵447 billion, with deposits surging from GH₵276 billion to GH₵325 billion, positioning the industry to better support the broader economic recovery.
Cautious Optimism Amid Global Risks
Despite the positive domestic data, Dr. Asiama urged caution, pointing to lingering external risks such as global financial uncertainties and volatile commodity prices. He emphasized that the BoG would remain vigilant, adapting its policies based on incoming data to navigate these challenges.
Parliament Commends BoG’s Transparency
The Chairman of the Parliamentary Committee on Economy and Development, Eric Afful, praised the central bank for its openness. He encouraged the BoG to maintain such engagements with Parliament to counter misinformation and enhance public understanding of the policies driving the economic turnaround.
