The International Monetary Fund (IMF) has advised the Bank of Ghana to maintain a tight monetary policy stance until inflation returns to its single-digit target.
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Bo Li, Deputy Managing Director of the IMF, made the statement following the Fund’s completion of the fourth review of Ghana’s $3 billion Extended Credit Facility (ECF) programme.
The IMF board met on July 7 to assess progress under the arrangement, which was initially approved in May 2023.
Inflation in Ghana currently stands at 13.7% as of June 2025, according to the Ghana Statistical Service.
Li emphasized the need for the Bank of Ghana to limit its presence in the foreign exchange market and adopt a formal FX intervention policy framework to ensure greater exchange rate flexibility.
On the financial sector, the IMF noted Ghana’s efforts to address undercapitalised banks but stressed that further actions are required. These include fully implementing reforms at the National Investment Bank (NIB), improving the viability of state-owned banks, and preparing contingency plans for weak financial institutions.
Li also called for enhanced crisis management and resolution frameworks, stronger financial safety nets, and tackling legacy issues in specialised deposit-taking institutions.
He praised the Mahama-led administration for making bold corrective moves after previous policy slippages and delays. “The new administration has shown strong commitment to restoring fiscal discipline and addressing structural weaknesses,” he said.
Ghana’s government has passed a 2025 budget in line with IMF objectives and strengthened fiscal rules. The IMF urged continued focus on domestic revenue mobilisation, expenditure control, and reforms in the energy sector to manage fiscal risks.
In conclusion, the IMF remains optimistic that the combination of renewed reform efforts and improved external conditions will help Ghana achieve macroeconomic stability, rebuild resilience, and promote inclusive growth.
