Bank of Ghana targets 12% inflation by end of 2025

The Bank of Ghana has revised its 2025 end-of-year inflation target from 16% to 12%. Governor Dr. Johnson Asiama believes the new goal is realistic with strong policy action.

Speaking to JoyBusiness during the IMF/World Bank Spring Meetings in Washington, D.C., he pointed to the cedi’s recent stability and the Bank’s firm monetary stance. He said these moves will help curb food inflation and push rates lower.

Dr. Asiama also confirmed that the next Monetary Policy Committee (MPC) meeting will be held on May 22. “The Bank of Ghana will act based on our data,” he assured.

The revised target marks a sharp drop from earlier estimates. If achieved, it would be Ghana’s lowest inflation in four years.

Inflation has slowed for three straight months. In March 2025, it dropped to 22.4%, down from 23.1% in February. This trend has raised hopes of continued progress.

At its last meeting, the MPC raised the policy rate by 100 basis points to 28%. Some analysts believe another hike could come in May to meet the 12% target.

The IMF has endorsed tighter policies. In a recent statement, it said Ghana’s ongoing fiscal reforms and firm monetary stance will help lower inflation.

However, the IMF forecasts a 17.5% inflation rate by the end of 2025. That’s still higher than the Bank’s target and the 11.9% figure set by Finance Minister Dr. Ato Forson in the 2025 Budget.

By 2026, the IMF expects Ghana’s inflation to fall to 9.4%. That could bring the country back to single-digit inflation for the first time in years.

Some economists remain skeptical. Professor Peter Quartey called the target “too ambitious,” citing current economic challenges. Still, the Bank of Ghana insists it is on the right path.