The Bank of Ghana’s newly appointed Governor, Dr. Johnson Asiama, has pledged greater transparency in the Central Bank’s Monetary Policy decisions, emphasising the need for clear communication with the public.
Speaking at his first Monetary Policy Committee (MPC) meeting as Governor, Dr. Johnson Asiama acknowledged growing concerns that policy decisions are made behind closed doors, without sufficient public insight.
“There’s a growing sense in public commentary that MPC decisions are taken without clear, data-driven reasoning,” he stated.
“To counter this, I am proposing that we implement mechanisms to make the Committee’s decision factors more accessible – whether through publishing voting outcomes or enhancing the narrative content of our policy statements.”
Dr Johnson Asiama’s call for transparency comes at a time of heightened economic uncertainty, with inflation still uncomfortably high at over 23 percent.
While inflation has been easing, progress has been slow, particularly in the food sector where structural drivers continue to exert pressure on prices.
Beyond inflation concerns, Ghana’s fiscal landscape remains fragile. Dr. Johnson Asiama revealed that the 2024 fiscal deficit exceeded program targets, although early signs in 2025 suggest efforts toward consolidation.
However, questions persist over whether current fiscal measures will be enough to anchor expectations and satisfy upcoming International Monetary Fund (IMF) program reviews.
“While we have seen encouraging signs of consolidation early in 2025, questions remain as to whether current measures are adequate,” he noted.
The Governor also highlighted key risks in the external economic environment, including a potential escalation in global tariff wars, rising geopolitical tensions, and weakening demand from China.
These factors, he warned, could have significant spill over effects on Ghana’s inflation, capital flows and exchange rate stability.
Domestically, financial conditions are evolving rapidly. Liquidity in the banking sector has increased, and commercial banks have raised concerns about the Cash Reserve Ratio (CRR) framework.
Dr. Johnson Asiama acknowledged these concerns, noting the importance of assessing their macro-financial implications – particularly in relation to inflation, foreign exchange demand and credit growth.
“While private sector credit is recovering in nominal terms, real credit growth remains modest,” he observed. Banks are still cautious, and non-performing loan levels remain a concern.”
Despite these challenges, Dr. Johnson Asiama remains optimistic about Ghana’s ability to navigate the economic turbulence.
He pointed to strong foreign reserves, improving market sentiment, and the credibility of the central bank’s policy framework as key buffers against potential shocks.
“We are facing a convergence of risks: stubborn inflation, elevated liquidity, soft real interest rates, a fragile fiscal recovery, and growing external uncertainty,” he said.
“But we also have buffers—strong reserves, improving sentiment, and the credibility of our policy framework—to guide us.”
As the 123rd MPC meeting progresses, the Bank of Ghana’s leadership faces the delicate task of reinforcing its disinflation path without undermining economic recovery or destabilising market expectations.
The Governor assured the committee that discussions would be “candid, evidence-based, and guided by our shared mandate of maintaining price stability and supporting sustainable growth.”
