The Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has pointed out the significant cost involved in sustaining macroeconomic stability, despite recent improvements in key economic indicators. He raised concerns about the strain of tight monetary policies on the central bank and their effects on lending and business expansion.
He explained that Ghana’s economic rebound in 2025 characterised by declining inflation and a more stable currency required substantial financial effort, as the central bank committed major resources to control liquidity and stabilise prices.
Addressing participants at the Governor’s Roundtable during the Kwahu Business Forum 2026, he noted that central banking requires balancing competing priorities, particularly managing inflation while supporting growth, which ultimately influences business performance and the wider economy.
Reflecting on recent gains, Dr Asiama stated that the cedi remains stable and under control. He highlighted the complexity of policymaking, stressing that decisions often involve careful trade-offs aimed at achieving the right balance.
He further noted that attaining this level of stability demanded strong monetary measures, explaining that although the previous year delivered positive results, it came at a high cost to the central bank. Significant funds were used to absorb excess liquidity and reduce inflation to 5.4% by December 2025.
Looking ahead, he suggested that sustaining low inflation may not require the same level of intervention, noting that the current inflation trend indicates less pressure on resources will be needed to maintain stability going forward.
He also underscored the need for a robust financial sector to drive private sector growth, pointing out that stronger banks are better positioned to extend credit to businesses.
The Governor’s Business Roundtable marked the closing session of the 2026 Kwahu Business Forum, which began on April 3 and brought together entrepreneurs, industry leaders, investors, policymakers, and development partners to explore strategies for boosting business growth.
Notable attendees included Julius Debrah, Rita Akosua Adjei Awatey, Seth Terkper, and Marietta Agyeiwaa Brew.