BoG Governor highlights potential risk to inflation outlook

The Governor of Bank of Ghana (BoG) Dr. Johnson Asiama has expressed concerns about the impact of exchange rate volatility and taxes in the Mid-Year Review on pricing behaviour.

He stated that the development “can cause a shift in inflation expectations”.

He has encouraged the Monetary Policy Committee members of the Bank of Ghanan to maintain a strong focus on the forward-looking risk and policy tradeoffs and the need to provide credible guidance to the market.

Dr. Asiama made the statements in his opening remarks at the committee meeting at the Bank of Ghana Head office in Accra today, July 28, 2025.

Current economic developments 

The Governor reminded the members that the biggest question is whether “current macroeconomic configuration warrants a recalibration of our monetary policy stance”

“With inflation expectations more firmly anchored, external buffers significantly strengthened, and public confidence improving, we must consider how best to support the recovery without compromising the hard-won gains in stability”, he added.

On the fiscal front, the Governor admitted that there has been significant progress.

BoG data

Ghana has a primary surplus of 1.1 percent of GDP well above the 0.4 percent target.

There is a reduction in the overall fiscal deficit to 0.7 percent of GDP, and actual expenditures coming in 14.3 percent below target.

Ghana has recorded a rare 15.6 percent reduction in public debt stock in the first half of the year, bringing the debt-to-GDP ratio down to 43.8 percent.

According to Dr. Asiama, “these outcomes signal a credible path to debt sustainability and macroeconomic stability”.

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