The Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has reaffirmed the BoG’s commitment to maintaining price stability, safeguarding financial stability and creating the conditions for inclusive and sustainable growth.
“Our commitment remains firm: maintain price stability, safeguard financial stability, and create the conditions for inclusive sustainable growth,” he assured at the 126th meeting of the Monetary Policy Committee (MPC) in Accra yesterday.
Dr Asiama said the strong performance of the economy and easing inflationary pressures had enabled the MPC in July to reduce the policy rate by 300 basis points to 25 per cent, while reiterating its readiness to adjust as the disinflation process evolves.
Provisional data, he said, showed that gross domestic product (GDP) growth accelerated to 6.3 per cent in the second quarter of 2025, led by the services and agriculture sectors. Non-oil GDP expanded even faster, at 7.8 per cent.
“Ghana’s recovery is gaining momentum even as the global environment remains uncertain. Worldwide, growth is easing, and financial conditions are still tight amid trade tensions and geopolitical risks; yet domestically, improved fundamentals have strengthened confidence in our outlook,” Dr Asiama, stated.
High-frequency indicators, the Governor noted, confirmed the positive momentum.
He said the Bank’s Composite Index of Economic Activity rose by 6.1 per cent year-on-year in July, while recent Purchasing Managers’ Index (PMI) readings, alongside business and consumer surveys, pointed to improving sentiment.
On the price front, Dr Asiama said headline inflation fell further to 11.5 per cent in August, the lowest since October 2021. “This outcome was supported by a tight monetary stance, fiscal consolidation, and better food supplies; core measures and expectations continue to re-anchor,” Dr Asiama said.
External buffers also improved, with the country recording a trade surplus of $6.2 billion in the first eight months of 2025, underpinned by robust gold exports and higher cocoa receipts. Gross international reserves reached $10.7 billion in August, covering about 4½ months of imports.
Dr Asiama said Cedi remained one of the world’s strongest currencies this year, appreciating by 21 per cent as of September 12 despite seasonal pressures and moderating remittance inflows.
“It now ranks alongside high performers such as the Russian ruble, Swedish krona, Norwegian krone, Swiss franc, Euro, and British pound. This outperformance reflects prudent monetary policy, effective liquidity management, fiscal consolidation, and increased foreign-exchange inflows,” Dr Asiama emphasised.
BY KINGSLEY ASARE
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