MPC Decisions Must Reinforce Recovery Without Derailing Gains – BoG Governor Asiama
BoG Governor urges careful policy decisions to protect macroeconomic stability and sustain growth momentum.
- Despite encouraging data, the Governor acknowledged significant challenges
- Dr. Asiama emphasized the need for balanced policy choices
- The Bank’s Composite Index of Economic Activity also grew by 4.4% year-on-year in May
Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has urged members of the Monetary Policy Committee (MPC) to ensure that their upcoming decisions continue to support Ghana’s ongoing economic recovery while preserving the hard-won macroeconomic stability.
Speaking at the opening of the MPC meeting held at the BoG headquarters in Accra, Dr. Asiama emphasized the need for balanced policy choices, especially at a time when key indicators suggest both progress and caution.
“Our decisions must reflect the fact that inflation expectations are now more firmly anchored, external buffers are strengthened, and market confidence is improving,” he stated.
Dr. Asiama called on committee members to critically assess whether the current macroeconomic environment warrants a recalibration of the monetary policy stance, urging them to weigh forward-looking risks and provide credible guidance to the market.
Balancing Risks and Momentum
Despite encouraging data, the Governor acknowledged significant challenges, including the lingering impact of the 7.9% fiscal deficit recorded in 2024 and tight liquidity conditions across the banking sector.
“While the 2025 budget signals strong commitment to fiscal consolidation, we must stay alert to the pace of monetary policy transmission, especially to credit channels and key productive sectors,” Dr. Asiama cautioned.
Signs of Recovery Strengthen
On the domestic front, Dr. Asiama pointed to increasingly positive indicators. Ghana’s economy grew by 5.3% in the first quarter of 2025, led by strong performances in agriculture and services. Non-oil GDP rose by an even more impressive 6.8%.
The Bank’s Composite Index of Economic Activity also grew by 4.4% year-on-year in May, while business and consumer confidence, as measured by recent PMI data, continues to rise. Private sector credit growth has nearly doubled, from 10.8% in April 2024 to 19.9% in April 2025.
Robust External Position Boosts Confidence
Ghana’s external accounts remain strong, with a provisional trade surplus of $5.6 billion for the first half of 2025, driven by solid gold and cocoa export earnings. The current account surplus has also widened to $3.4 billion.
Dr. Asiama credited the IMF-backed economic programme and recent credit rating upgrades for improving investor sentiment and foreign exchange inflows.
Global Outlook Mixed
While domestic fundamentals improve, the Governor warned of ongoing global uncertainty. World economic growth is expected to slow to 2.8% in 2025, down from 3.3% last year, as tight financial conditions and high interest rates weigh on markets.
“Oil prices have stabilized around $69.80 per barrel, but geopolitical tensions and trade frictions continue to cloud the global outlook,” he noted.
Dr. Asiama concluded by urging the MPC to adopt a balanced approach that safeguards economic stability while encouraging growth, stating, “Our mandate requires a steady hand—anchoring inflation, managing expectations, and supporting recovery.”
