BoG Says Inflation Expectations Re-anchored, Underpinning Sustained Growth and Investor Confidence
The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has stated that underlying inflation expectations have been firmly re-anchored, providing a critical platform for sustained economic growth, long-term investment and renewed confidence among households and businesses.
Dr. Asiama made the remarks during an engagement with Chief Executive Officers of commercial banks, where he outlined the central bank’s assessment of recent macroeconomic developments and the outlook for inflation and growth. According to him, the improved inflation dynamics reflect the impact of consistent and prudent monetary policy actions, supported by stronger coordination across the broader macroeconomic policy framework.
“Underlying inflation expectations have been firmly re-anchored, providing a vital foundation for sustained growth, long-term investment and renewed confidence among households and businesses,” the BoG Governor said, stressing that price stability remains central to the Bank’s mandate.
He explained that the re-anchoring of inflation expectations is particularly important for restoring confidence in the economy, as it offers greater predictability for investors, businesses and financial institutions. With inflation risks better contained, Dr. Asiama noted that firms are more likely to undertake longer-term investment decisions, while banks can price risk more accurately and extend credit with greater confidence.
The Governor added that a stable inflation environment contributes to lower risk premiums and reduced borrowing costs over time, which in turn supports private sector activity and job creation. He indicated that these developments are crucial for sustaining the ongoing economic recovery and strengthening the transmission of monetary policy to the real economy.
Dr. Asiama further assured that the Bank of Ghana will remain committed to policies that consolidate recent gains in macroeconomic stability, while gradually creating room for growth-enhancing measures that support businesses and households. He noted that the central bank will continue to monitor both domestic and external risks, including global financial conditions, commodity price movements and fiscal developments, to ensure that inflation remains on a disinflationary path.
Beyond inflation management, the Governor also highlighted the importance of a resilient and well-capitalised banking sector in supporting economic growth. He said ongoing engagements with commercial banks are aimed at strengthening collaboration, improving credit delivery to productive sectors and safeguarding financial stability.
Dr. Asiama expressed optimism that with inflation expectations now firmly anchored, Ghana’s economy is better positioned to attract both domestic and foreign investment, boost productivity and sustain its recovery trajectory. He added that maintaining confidence in macroeconomic management will be key to unlocking long-term growth and ensuring inclusive economic outcomes.
