BoG Projects Single-Digit Inflation by Q1 2026 Amid Policy Optimism
The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has announced that the central bank is projecting Ghana’s inflation rate to reach single digits by the first quarter of 2026.
This forecast hinges on the effective implementation of economic policies and programmes by the incoming John Mahama administration in 2025.
Speaking in an interview, Dr. Addison emphasized that the Bank of Ghana’s monetary policy measures will play a crucial role in curbing inflation.
Inflation Trends in 2024 and 2025
The BoG initially forecasted inflation to end 2024 at 15%, later revising the figure to 18%. However, November 2024 inflation rose marginally to 23% from 22.1% in October, driven by election-related uncertainties and market sentiments.
Dr. Addison expressed confidence in a gradual slowdown, projecting inflation to decline to 15% by the end of 2025 from its current level of 23%.
“Based on the work that the Bank of Ghana has done in checking rising price levels through the inflation targeting policy, the inflation rate will slow down for this year (2025),” he assured.
Impact of Monetary Policies and Cedi Stabilization
The Governor highlighted the importance of stabilizing the cedi to support price stability, acknowledging the currency’s struggles during the debt exchange exercise under the IMF programme.
“There is a link between the cedi and inflation rate,” he noted, expressing optimism about the cedi’s performance in 2025 and its positive impact on prices.
Inflation reached a peak of 54.1% in December 2022, the highest in 22 years, before showing signs of easing in 2023. Although 2024 saw some challenges, the BoG remains committed to sustaining progress through robust monetary policy interventions.
Dr. Addison reaffirmed the central bank’s commitment to stabilizing inflation and the cedi, setting the stage for a more predictable economic environment in 2025 and beyond.
