The Governor of the Bank of Ghana (BoG) Dr. Johnson Asiama has charged members of the Monetary Policy Committee (MPC) to ensure that their decisions support the ongoing economic recovery process without compromising current gains.

Dr. Asiama noted that one of the key questions that should be under consideration is whether “current macroeconomic configuration permits a recalibration of the policy stance”.

He reminded members of the committee that their decisions should be guided by the fact that inflation expectation is more firmly anchored, external buffers strengthened, and confidence maintained.

The Governor made the statements in his opening remarks at the Monetary Policy Committee meeting at the Bank of Ghana Head office in Accra today, July 28, 2025.

Dr. Asiama urged all the members to sharpen their focus on “forward-looking risks, policy trade-offs, and credible guidance to markets”.

“Our mandate requires a balanced decision that reinforces stability while enabling sustainable growth”, he emphasized.

Challenges and concerns ahead

Dr.  Asiama cautioned that there are some glaring challenges that should not elude the committee in in its analysis and consideration to arrive at a new policy rate decision. 

He cited for instance, the 2025 Budget which reflects the firmer commitment to fiscal consolidation, the overhang from the 7.9 percent fiscal deficit in 2024 which still persists.

“Liquidity conditions are still tight, and we must remain attentive to the pace and breadth of policy transmission, particularly to credit channels and the productive sectors”, he pointed out.

Favourable Economic Data

Despite all the concerns, Dr. Asiama noted that domestically, signs of recovery have become more pronounced.

“Real GDP expanded by 5.3 percent in the first quarter, driven by strong growth in agriculture and services, while non-oil GDP rose by 6.8 percent”, he revealed.

“Another development that we should note or be guided by is the fact that the Bank’s Composite Index of Economic Activity increased by 4.4 percent year-on-year in May, and the latest PMI readings point to rising business and consumer confidence”, he said.

“Private sector credit growth has also improved, reaching 19.9 percent in April, up from 10.8 percent a year earlier, with the contraction in real credit narrowing substantially”, he added.

Dr. Asiama also revealed that Ghana’s external position remains robust recording “provisional trade surplus of US$5.6 billion in the first half of 2025, supported by strong gold and cocoa export receipts”.

He stated that the current account surplus has widened to US$3.4 billion over the same period.

The development the Governor maintained that has helped improved investor sentiment, bolstered by Ghana’s IMF-supported programme and better credit ratings, has further strengthened foreign exchange inflows.

Global Concerns

On external issues, the Governor painted some mixed sentiments, warning that the environment remains uncertain.

“Growth momentum is weakening, with global growth projected to slow to 2.8 percent in 2025, down from 3.3 percent in 2024”.

Dr. Asiama said financial conditions remain tight amid elevated interest rates, and disinflation, though ongoing, is expected to proceed unevenly.

“Oil prices have stabilized at around US$69.8 per barrel but lingering geopolitical risks and trade tensions continue to cloud the outlook”, he revealed.