Inflation to Remain Within 8+/-2 Target Band by End-Q4, Says BoG Governor
Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has expressed confidence that inflation will remain within the medium-term target band of 8 ± 2 percent by the end of the fourth quarter of 2025.
Speaking at a post-Monetary Policy Committee (MPC) engagement on Tuesday, October 7, 2025, Dr Asiama stated that the Central Bank remains vigilant to potential risks, including global oil price volatility and possible domestic tariff adjustments, and stands ready to act decisively to safeguard macroeconomic stability.
“Inflation has continued its remarkable downward path, falling to 9.4 percent in September 2025, marking the ninth consecutive month of decline and the first return to single digits in four years,” he noted.
Food inflation dropped sharply to 11 percent, while non-food inflation eased further to 8.2 percent — developments the Governor attributed to consistent monetary policy tightening, prudent liquidity management, and ongoing fiscal consolidation efforts.
Dr Asiama further emphasized the importance of sustaining a stable exchange rate and deepening credit to productive sectors to support the economy’s recovery. According to him, achieving these objectives will require stronger collaboration between the Bank of Ghana and the banking industry.
He therefore urged banks to design and promote export-oriented financial products, extend credit to small and medium-scale enterprises (SMEs) and agribusinesses, and enhance foreign exchange (FX) sourcing through formal market channels.
“In the same spirit, we urge banks to adhere to domestic regulatory provisions, including the use of local insurance companies for import coverage to help reduce foreign exchange leakages and build local liquidity,” Dr Asiama added.
