New BoG Governor Must Resist Government Pressure, Tackle Inflation — P9rof. Asuming
Economist Professor Patrick Asuming has urged the newly appointed Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, to take a firm stance in managing the country’s monetary policy, emphasizing the need to resist undue government influence.
Speaking in an interview with Citi Business News, Professor Asuming cautioned against excessive money printing to finance fiscal deficits, a practice he noted had contributed to economic instability in the past.
Beyond monetary policy, he highlighted the pressing need for decisive measures to curb rising food inflation, which remains a major challenge despite an overall slowdown in headline inflation.
“I think we shouldn’t expect too much by way of thinking that the new governor has a magic wand that he can wave to bring inflation down. The current inflation we are seeing is more entrenched and domestic. It’s not as simple as raising the policy rate because it seems like the cost of production, rather than liquidity, is driving it,” he explained.
According to him, addressing inflation effectively will require stronger collaboration between the Ministry of Finance and the BoG on fiscal policy management.
“I just hope that he’s going to be strong and firm, especially when dealing with the government, and ensure that the kind of money printing we have seen in the past doesn’t happen,” he added.
Professor Asuming’s comments follow the latest inflation data, which showed a decline in Ghana’s inflation rate to 23.5% in January 2025, after four consecutive months of increases. Despite this, food inflation rose to 28.3% in January from 27.8% in December, signaling persistent price pressures. Meanwhile, non-food inflation continued its downward trend, dropping to 19.2% from 20.3% over the same period.
The new BoG governor, Dr. Asiama, faces the challenge of maintaining monetary discipline while supporting economic growth amid ongoing inflationary pressures.
