Accra, April 6 – Dr Johnson Pandit Asiama, Governor of the Bank of Ghana (BoG), has revealed that the Central Bank incurred significant financial costs in 2025 to reduce inflation to 5.4 per cent through tight monetary policy.
- The disinflation effort required aggressive liquidity management, including open market operations to absorb excess funds from the financial system.
- Dr Asiama noted that while inflation fell from 23.8% in December 2024 to 5.4% by end-2025, the measures were expensive for the Bank.
“Last year was good but expensive for the Central Bank. It took us a lot of money to mop up excess liquidity and bring inflation down,” he said at the Governor’s Roundtable during the Kwahu Business Forum.
- The Governor emphasized the trade-offs between controlling inflation and supporting economic growth, noting that exchange rate stability was a key outcome of the policy measures.
- He expressed optimism that sustaining low inflation in 2026 would be less costly, thanks to improved macroeconomic conditions.
- Dr Asiama also highlighted that central banks globally, including the US Federal Reserve and European Central Bank, face similar challenges, as tools to control inflation often carry high financial costs.
- He stressed that controlling inflation is essential for protecting real incomes and ensuring macroeconomic stability.
- A strong financial sector, he added, is critical to boosting credit to businesses and supporting economic growth.
Dr Asiama assured the business community that the Bank of Ghana would continue pursuing policies to maintain low inflation while fostering economic expansion.
GHBUSS
6 April 2026
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