Governor Asiama Urges MPC to Anchor Decisions on Economic Rebound Without Reversing Gains
Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has urged members of the Monetary Policy Committee (MPC) to anchor their policy decisions on sustaining the country’s ongoing economic recovery, without reversing the macroeconomic stability gains achieved in recent months.
Speaking at the opening session of the MPC meeting held at the Bank’s Head Office in Accra on Monday, July 28, Dr Asiama stressed the importance of balancing the Bank’s policy mandate with the emerging dynamics of the domestic and global economy.
“One of the key questions we must consider is whether the current macroeconomic configuration permits a recalibration of the policy stance,” he noted, adding that committee decisions must reflect the reality that inflation expectations are becoming more firmly anchored, external buffers have strengthened, and overall market confidence is improving.
He charged the Committee to sharpen its focus on “forward-looking risks, policy trade-offs, and credible guidance to markets,” in line with the Bank’s dual mandate of ensuring price stability while supporting sustainable economic growth.
“Our mandate requires a balanced decision that reinforces stability while enabling sustainable growth,” Dr Asiama emphasised.
Policy trade-offs amid lingering fiscal pressures
While recognising the progress made, the Governor cautioned that significant challenges remain.
He pointed to Ghana’s 2025 Budget which, although reflective of a firmer fiscal consolidation stance, still carries the legacy of a 7.9% fiscal deficit recorded in 2024.
“Liquidity conditions are still tight, and we must remain attentive to the pace and breadth of policy transmission, particularly to credit channels and the productive sectors,” he warned.
Data suggests strengthening recovery
On the domestic front, the Governor acknowledged more visible signs of economic rebound.
According to Dr Asiama, real GDP grew by 5.3% in the first quarter of 2025, led by strong expansion in agriculture and services, while non-oil GDP rose by 6.8%.
He also disclosed that the Bank’s Composite Index of Economic Activity (CIEA) rose 4.4% year-on-year in May, with Purchasing Managers’ Index (PMI) readings also showing rising business and consumer confidence.
Private sector credit growth, he said, had accelerated to 19.9% in April 2025 from 10.8% a year earlier, narrowing the contraction in real credit.
Robust external sector performance
Dr Asiama revealed that Ghana’s external sector remains resilient, underpinned by strong export earnings and improved investor sentiment.
A provisional trade surplus of US$5.6 billion was recorded in the first half of 2025, driven largely by gold and cocoa receipts, while the current account surplus widened to US$3.4 billion.
He noted that the country’s IMF-supported economic programme, alongside recent improvements in sovereign credit ratings, had helped attract strong foreign exchange inflows and bolstered market confidence.
Global headwinds remain
Turning attention to the global environment, the Governor noted persistent uncertainties that could influence the domestic economy.
“Growth momentum is weakening globally, with global output projected to decelerate to 2.8% in 2025 from 3.3% in 2024,” he said.
Financial conditions remain tight due to elevated interest rates, while the disinflation process is progressing unevenly across markets. Meanwhile, crude oil prices have stabilised at US$69.8 per barrel, but geopolitical risks and trade tensions continue to cloud the outlook.
As the Committee prepares to announce its latest policy rate decision, the Governor’s call sets the tone for a cautious but forward-looking policy stance in the face of tentative domestic gains and a volatile global backdrop.
