BoG Rules Out Policy Shocks as It Anchors Expectations in 2026

By Praisebell Rosemond Larbi

Following a demanding period of macroeconomic stabilisation, the Bank of Ghana (BoG) says it is entering 2026 with a more predictable, disciplined and forward-looking monetary policy stance, aimed at anchoring expectations and sustaining confidence in the economy.

Speaking at his first New Year media engagement as Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama said the era of sharp policy adjustments that characterised 2025 has given way to a phase of consolidation, where credibility, continuity and clear signalling will be just as important as interest rate decisions themselves.

According to the Governor, with inflation easing significantly over the past year, the central bank’s strategy has shifted from crisis management to expectation management, with a strong emphasis on avoiding policy surprises that could unsettle markets.

“Monetary policy will remain measured and forward-looking, anchored on price stability. The objective is not to surprise markets, but to reinforce credibility through continuity,” Dr. Asiama told journalists in Accra.

He explained that modern central banking increasingly relies on clarity and consistency to influence economic behaviour. Predictable policy paths, he noted, help reduce uncertainty, support long-term planning, and allow businesses, households, and investors to make informed decisions. Abrupt or unanticipated policy shifts, even in improving economic conditions, can undermine confidence and reverse hard-won gains.

Dr. Asiama stressed that the Bank of Ghana will continue to base its decisions on evidence, risk assessment, and the medium-term outlook, rather than short-term pressures or speculative sentiment.

“We do not respond to pressure, speculation, or sentiment. We respond to evidence, risks, and the medium-term outlook for price and financial stability,” he said.

Reflecting on the progress made in 2025, the Governor said the sharp disinflation recorded over the year was the result of disciplined and sustained policy execution, rather than chance. Inflation declined from 23.8 per cent in December 2024 to 5.4 per cent by the end of December 2025, supported by tight monetary conditions, effective liquidity management, and consistent communication by the central bank.

According to Dr. Asiama, the key challenge in 2026 is to protect these gains by avoiding premature easing or sending mixed policy signals that could reignite inflationary pressures.

“In rebuilding credibility and restoring order, quick fixes are rarely durable, explaining why the Bank intends to proceed cautiously even as macroeconomic indicators continue to improve,” he said.

In the financial markets, the Governor said the emphasis will be on fewer ad hoc interventions and greater reliance on established, rules-based frameworks. Reforms introduced in the foreign exchange market, including transparent auction mechanisms and enhanced oversight, are expected to continue into 2026 to support orderly price formation and reduce uncertainty.

He noted that recent improvements in confidence must now be entrenched through consistent and routine market practices, rather than exceptional measures.

Dr. Asiama also acknowledged the human dimension of monetary policy, noting that behind every policy decision are real economic actors facing difficult trade-offs.

“Behind every policy decision are real people, households managing rising costs, businesses navigating uncertainty, and workers concerned about jobs and incomes,” he said, adding that policy choices are made with these realities firmly in mind.

The Governor said the central bank’s forward-looking stance reflects lessons learned during the adjustment period, when stability was prioritised over speed. Restoring trust, he noted, required restraint, transparency and consistency, not dramatic gestures.

“Trust in a central bank is built not by promises, but by consistency, transparency, and integrity over time, reaffirming the Bank of Ghana’s commitment to safeguarding price stability and market confidence in 2026 and beyond,” Dr. Asiama said.