BoG Signals Steady Growth and Cautious Policy Path as MPC Convenes
By Praisebell Rosemond Larbi
The Bank of Ghana (BoG) has expressed renewed confidence in the country’s economic outlook, citing steady growth momentum, easing inflation pressures, increased foreign exchange reserves and a stable currency as the Monetary Policy Committee (MPC) begins its 127th meeting.
Speaking at the opening session on Monday, November 24, 2025, Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama said the economy had “turned a decisive corner” over the past year. Headline inflation has eased to 8 percent, while core inflation remains contained between 5 and 7 percent, helping to anchor price expectations. The cedi has also remained broadly stable, supported by ongoing foreign exchange (FX) market reforms, healthy trade inflows and improved reserve buffers.
Gross international reserves have risen to US$11.41 billion, equivalent to 4.8 months of import cover and are on track to reach five months by the end of the year. Growth momentum continues to broaden across sectors, with GDP expanding 6.3 percent in the first half of 2025 and non-oil GDP accelerating at 7.8 percent. High-frequency indicators, notably the Composite Index of Economic Activity, climbed roughly 9 percent, while business and consumer sentiment surveys point to improving confidence.
“This performance shows the economy is gradually shifting from recovery to expansion, attributing the improvement to disciplined fiscal management, a cautious monetary stance and structural reforms, including changes to FX operations and the rebuilding of external buffers. He noted that the forthcoming 2026 Budget is expected to consolidate growth, with significant emphasis on job creation and value-addition,” Governor Asiama remarked.
BoG’s medium-term projection points to continued expansion through 2026, driven by strong performance in services, industry and agriculture. A strong harvest season, improved food supply chains, increased FX liquidity and an easing credit environment are expected to support further gains. Inflation is forecast to settle between 4 and 6 percent by year-end, setting the stage for what the governor described as “a multi-year period of price stability.”
Despite the optimism, Asiama emphasised that global risks remain a concern, especially volatility in energy and commodity markets, geopolitical uncertainty and tightening global financing conditions. Domestically, rising taxes, utility tariffs and high lending rates continue to weigh on business operations.
For the MPC, he highlighted three priority areas: monitoring the pace of disinflation and real interest rates; deepening FX reforms while diversifying reserve holdings; and strengthening financial sector stability to ensure improved credit transmission. Although the banking sector is broadly sound, a few institutions continue to face recapitalisation and asset quality challenges.
“The task before us is to protect stability while supporting real-sector recovery. Our decisions must reinforce confidence, signal predictability and keep Ghana firmly on a path toward higher, job-rich growth,” governor stated.
