BoG Modernises Monetary Policy Approach

The Bank of Ghana (BoG) is reviewing its monetary policy framework to a more active open market operations regime.  

The new approach will include longer-tenor BoG instruments.  

Dr Johnson Asiama, Governor of BoG, announced the transition at the 124th Monetary Policy Committee (MPC) Meeting in Accra.  

He said the move aims to enhance policy transmission, improve liquidity management, and expand private-sector credit access.  

Dr Asiama stressed the need to assess whether the current monetary stance effectively drives disinflation without harming economic growth.  

He raised key concerns, including the sustainability of exchange rate appreciation, the stability of market confidence, and their impact on medium-term inflation forecasts.  

The Governor emphasized that the post-meeting communiqué should clearly explain policy decisions and provide a transparent economic overview to anchor expectations and maintain public trust.  

He urged committee members to approach deliberations with professionalism, rigor, and independence, noting that the MPC’s credibility depends on its ability to respond decisively to economic shifts.