In his opening remarks at the 123rd Monetary Policy Committee meeting, Bank of Ghana Governor Dr. Johnson Asiama emphasized the need for transparency and prudent decision-making amidst Ghana’s economic challenges.
“There’s a growing sense in public commentary that MPC decisions are taken behind closed doors without clear, data-driven reasoning,” Dr. Asiama noted, proposing measures to make the Committee’s decision factors more accessible.
Dr. Asiama acknowledged the country’s economic struggles, citing inflation rates over 23 percent and slow progress in reducing it.
“Structural drivers of food inflation remain persistent,” he said, adding that the external environment is becoming increasingly volatile.
Ghana’s strong trade surplus and solid reserve build-up provide some buffers, but the Governor warned of potential risks from global tariff wars, geopolitical tensions, and weakening Chinese demand.
The Governor also highlighted the importance of acknowledging past monetary and fiscal policy missteps.
“Loose fiscal policy during periods of macro stress, weak monetary-fiscal coordination, and delays in key structural reforms” have contributed to elevated inflation, impaired policy transmission, and a loss of credibility.
Dr. Asiama stressed the need for institutional self-reflection to strengthen Ghana’s economic framework.
In conclusion, Dr. Asiama emphasized the Committee’s task to weigh the developments rigorously and reach a policy stance that reinforces the disinflation path without undermining the recovery or destabilizing market expectations.
“I trust that our discussions will be candid, evidence-based, and guided by our shared mandate of maintaining price stability and supporting sustainable growth”.
The Monetary Policy Committee’s decision will be announced on Friday, March 28, and is expected to address the country’s economic challenges while maintaining a delicate balance between inflation control and growth promotion.
-BY Issah Olegor
