Bank of Ghana pledges data-driven policies to sustain cedi stability and economic recovery

The Bank of Ghana (BoG) says it will continue to rely on data-driven monetary policy decisions as it works to maintain stability in the economy, strengthen the cedi and rebuild confidence in Ghana’s financial system.

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Governor Johnson Pandit Asiama made the assurance on Monday while presenting the Bank’s 2025 Monetary Policy Report to the Parliamentary Committee on Economy and Development at the Parliament of Ghana.

Dr Asiama said the central bank remains committed to a disciplined and prudent approach to monetary policy, emphasising that its actions will be guided by economic data despite uncertainties in global commodity markets.

He noted that when he took office in February 2025, the country was still recovering from a difficult economic period marked by debt restructuring, significant currency depreciation and high inflation levels.

According to him, although stabilisation efforts had already begun, the economic environment remained fragile at the time.

Headline inflation stood at 23.8 percent at the end of 2024, far above the central bank’s target range of 8% plus or minus two percentage points. During the same period, the Ghanaian cedi depreciated by 24.8%.

To address the situation, the Bank of Ghana introduced several policy measures, including maintaining a tight monetary policy stance, managing excess liquidity in the financial system and strengthening the country’s foreign exchange framework and external reserves.

Dr Asiama said these measures have produced significant results. Headline inflation declined from 23.8% in December 2024 to 5.4 percent by December 2025, before falling further to 3.3% in February 2026 one of the lowest levels recorded in recent years.

He added that the cedi has strengthened considerably as economic fundamentals improved, while the Monetary Policy Rate was reduced by 900 basis points to 18% to ease borrowing costs. Gross international reserves also increased to about $13.8 billion, providing approximately 5.7 months of import cover.

According to the Governor, these improvements are beginning to translate into real benefits for citizens, with prices stabilising and the overall economic environment becoming more predictable.

Dr Asiama also highlighted improvements in the banking sector, noting that capital adequacy has risen to 17.5 percent while asset quality has improved.

He said banks now have a clear strategy to reduce non-performing loans to around 10 percent by the end of 2026.

In addition, the banking sector’s total assets have increased from GH¢368 billion to GH¢447 billion, while deposits have grown from GH¢276 billion to GH¢325 billion.

These developments, he explained, indicate that the banking system is currently liquid, solvent and profitable, positioning it to play a stronger role in supporting the country’s economic recovery.

However, Dr Asiama warned that external risks remain, including changes in global financial conditions and fluctuations in commodity prices.

Chairman of the committee and Member of Parliament for Amenfi West, Eric Afful, commended the Bank of Ghana for its transparency and engagement with Parliament, urging continued collaboration to address misinformation surrounding economic issues.

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