Inflation remains high, says new Bank of Ghana Governor

Dr. Johnson Asiamah, the newly appointed Governor of the Bank of Ghana, acknowledged that inflation remains high, despite showing some improvement from its peak of over 54% in December 2022.

In February, consumer price inflation stood at 23.1%, still well above the bank’s target of 8%. Asiamah emphasized the need for a balanced monetary policy to continue reducing inflation without harming the country’s economic recovery.

He noted that while progress is being made, it’s been slow, and the goal in the coming days is to find a policy stance that helps drive inflation down without destabilizing market expectations. The Monetary Policy Committee is set to announce its next rate decision on March 28.

Finance Minister Cassiel Ato Forson has set a target to bring inflation down to 11.9% by the end of the year through significant spending cuts. However, Asiamah cautioned that external factors like global tariffs, geopolitical tensions, and weak Chinese demand could pose risks to the country’s economic outlook.

Despite these challenges, Asiamah highlighted some positive news, such as a trade surplus from gold exports and remittances, which have helped build foreign reserves.

He also pointed out that it remains uncertain if the government’s fiscal measures will meet the International Monetary Fund’s requirements for the country’s ongoing lending program, with the next review expected in April.

Having worked at the Bank of Ghana for over two decades, Asiamah’s experience brings a deep understanding of the challenges ahead as the country navigates its economic recovery.