In a keynote address to a private investor roundtable at the African Development Bank Annual Meetings, Bank of Ghana Governor Dr. Johnson Asiama outlined Ghana’s macroeconomic stabilization progress and reported that the Monetary Policy Committee has unanimously kept the policy rate at 28% to consolidate disinflation and support confidence. He indicated the tight monetary stance will be maintained until inflation expectations are re-anchored and headline inflation returns sustainably toward the medium-term target of 8 ± 2 percent. The Governor cited real GDP growth of 5.7% in 2024 and an expected 4.0% expansion in 2025, inflation easing from 23.8% in December 2024 to 21.2% in April 2025, and gross international reserves rising to USD 10.67 billion, equivalent to 4.7 months of import cover. As of 20 May 2025, the Ghana cedi had appreciated 21.5% year to date, which he linked to export foreign exchange inflows including gold priced above USD 3,200/oz, the Gold-for-Reserve programme, a current account surplus of USD 2.12 billion in Q1 2025, and a trade surplus of USD 4.14 billion in the first four months of 2025. On operations, the Bank is transitioning away from passive tools such as the unremunerated Cash Reserve Ratio toward a more active Open Market Operations regime to strengthen transmission and liquidity control, while also tightening enforcement of foreign exchange market regulations. He also referenced fiscal consolidation efforts, a Staff-Level Agreement with the IMF under the Fourth Review of the Extended Credit Facility programme, and an S&P sovereign rating upgrade from Selective Default to CCC+, alongside banking sector indicators including a 15.8% capital adequacy ratio in April 2025 and non-performing loans of 23.6%. The Bank signalled that the continuation of tight policy, the shift to an OMO-led liquidity framework, and stricter foreign exchange market oversight will proceed in tandem with the disinflation path and broader stabilization objectives.
Bank of Ghana 2025-05-28
Bank of Ghana keeps policy rate at 28% and moves liquidity management toward active open market operations
Bank of Ghana Governor Dr. Johnson Asiama, at the African Development Bank Annual Meetings, highlighted Ghana's macroeconomic stabilization, maintaining the policy rate at 28% to support disinflation. The Bank is shifting to Open Market Operations and tightening foreign exchange regulations, with fiscal consolidation and an IMF agreement aiding stabilization. Key indicators include a 21.5% appreciation of the cedi, a 4.0% GDP growth forecast for 2025, and gross international reserves rising to USD 10.67 billion.