The Bank of Ghana holds 124th Monetary Policy Committee (MPC) on 21st of May, 2025 at the Bank Square,Accra.
During the meeting, the Governor for the Bank of Ghana Dr. Johnson Asiama gave an opening remarks and he said “I acknowledge the rebust technical dicussion during last week’s Staff-Level engagements”. He also appreciated staffs effort that has help sharpened their focus on key policy issues.
He also made reference to the Ghana Statistical Service saying that inflation rate declined to 21.2% in April 2025, although it’s still above the medium-term target band of 8 ± 2%. The rate remains high, breaching the upper consultation band of 19%. He also said that the This inflation path has been shaped by a combination
of the monetary tightening, relative exchange rate stability and others.
According to Dr. Asiama the action the committee took in March has dampen the inflation momentum. “The cedi has appreciated 19 percent between April and May which has ease imported inflation pressure and it as a result of prudent monetary
policy, improved market sentiment, and external sector gains” he says
Mr. Asiama continued that Ghana has reached a Staff level Agreement with the Inter Monetary Fund (IMF) on the Extend Credit Facility (ECF) programme even other matters stands out.
Dr. Asiama also stated that inflation outlook in Ghana remains vulnerable to risks, including food supply constraints, volatile global commodity markets, geopolitical tensions, and evolving global trade dynamics, which could impact prices and financial flows.
“We are transitioning from reliance on the unremunerated Cash
Reserve Ratio to a more active Open Market Operations regime, including the use of longertenor BoG instruments” Dr. Asiama said
Dr. Asiama later explained the MPC is evaluating the current policy stance to ensure it supports economic growth while driving disinflation. He included key questions as whether the observed exchange rate appreciation is sustainable and how durable the return of market confidence is. “Is the observed exchange rate appreciation sustainable? and How durable is the nascent return of market confidence?” Dr. Asiama asked while saying they are crucial considerations. The committee’s credibility relies on responding decisively to economic realities. A clear post-meeting communiqué is essential for transparency and anchoring expectations.
He ended his remarks encouraging everyone meeting to treat the meeting with some professionalism
