Dr. Johnson Asiama, the Governor, has asserted that the recent S&P upgrade of Ghana’s sovereign rating from Selective Default to CCC+ has further affirmed Ghana’s economic progress under the resetting agenda to achieve price stability.
Speaking at the opening ceremony of 124th Monetary Policy Committee Meetings on 21st May, 2025 At The Bank Square in Accra, the Governor has reiterated the fact that, Ghana has reached a Staff Level Agreement with the IMF on the Fourth Review of the ECF Programme, and “although some prior actions remain outstanding, the trajectory is positive” and that, “we are also seeing encouraging signs of macroeconomic progress”.
Touching on progress made so far, Dr. Asiama mentioned that the external reserves have strengthened, the trade balance has improved, and consumer and business confidence indices are rising steadily.
However, significant challenges persist relative to inflation outlook, “while improving, remains vulnerable to second-round effects, food supply constraints, especially from northern Ghana and the Sahel, and external price shocks, particularly given volatile global commodity markets”.
He also raised geopolitical tensions and evolving global trade dynamics, including the recent US-led tariff disputes, as current issues that have heightened market uncertainty and could affect commodity prices, exchange rates, and financial flows in emerging markets like Ghana.
In this context, he has disclosed that the Bank has commenced a comprehensive review of its monetary policy implementation framework. “We are transitioning from reliance on the unremunerated Cash Reserve Ratio to a more active Open Market Operations regime, including the use of longer-term BoG instruments. This is intended to enhance policy transmission, improve liquidity management, and allow greater room for credit expansion to the private sector”.
At the ongoing MPC meeting, he asked colleagues to carefully assess whether the current monetary policy stance remains adequate to drive disinflation without undermining the fragile growth momentum.
Key questions include:
- Is the observed exchange rate appreciation sustainable?
- How durable is the nascent return of market confidence?
- What are the implications of these dynamics for our inflation forecast over the medium term?
