The Bank of Ghana (BoG) has confirmed that all future monetary policy decisions will be guided by data, despite fluctuations in global commodity prices, as it works to stabilize the cedi, restore macroeconomic confidence, and strengthen the nation’s foreign reserves.
Speaking on Monday while presenting the 2025 Monetary Policy Report to the Parliamentary Committee on Economy and Development at Parliament House, Governor Dr. Johnson Pandit Asiama emphasized the Bank’s commitment to evidence-based policymaking.
“I greatly value Parliament’s continuous engagement on matters of monetary policy, financial stability, and the overall health of the Ghanaian economy. Consequently, the Bank of Ghana will maintain a prudent, disciplined, and data-informed approach,” Dr. Asiama told members of the committee.
He reflected on the state of the economy when he assumed office in February 2025: “Ghana was emerging from one of its most challenging periods in recent history. The country faced sovereign debt restructuring, sharp currency depreciation, and surging inflation. While stabilization efforts were underway, the starting conditions were fragile.”
At the end of 2024, headline inflation stood at 23.8 percent, significantly above the Bank’s target of 8 ± 2 percent, and the cedi had depreciated by 24.8 percent over the year.
To address these challenges, BoG implemented a series of coordinated measures, including maintaining tight monetary policy, managing excess liquidity, and reinforcing external buffers alongside the foreign exchange framework.
Dr. Asiama highlighted the outcomes of these interventions: “Headline inflation declined from 23.8 percent in December 2024 to 5.4 percent in December 2025 and further fell to 3.3 percent by February 2026, one of the lowest levels in recent memory.”
He also pointed to a significant appreciation of the Ghanaian cedi, reflecting improved economic fundamentals, while the Monetary Policy Rate was reduced by 900 basis points to 18 percent, easing borrowing costs. Gross international reserves rose to US$13.8 billion, providing roughly 5.7 months of import cover.
“For everyday Ghanaians, success is tangible: prices are stabilizing, the cedi is more stable, and the economy is gradually returning to normal,” the Governor noted.
Positive developments were also observed in the banking sector. “Capital adequacy has increased to 17.5 percent, asset quality has improved, and banks now have a clear roadmap to reduce non-performing loans toward 10 percent by the end of 2026,” he said, adding that total assets rose from GH₵368 billion to GH₵447 billion and deposits increased from GH₵276 billion to GH₵325 billion.
“These indicators collectively show that the banking system is liquid, solvent, profitable, and increasingly able to support Ghana’s economic recovery,” Dr. Asiama added.
He acknowledged external risks, cautioning: “We remain alert to global financial volatility and shifts in commodity prices. The Bank of Ghana will continue to implement a cautious, disciplined, and data-driven monetary policy.”
Hon. Dr. Eric Afful, MP for Amenfi West, commended the Bank’s transparency, stating: “The Committee appreciates the Governor’s candid discussion and encourages continued engagement with Parliament to combat misinformation and disinformation.”