Dr. Johnson Asiama, Bank of Ghana Governor
The Chairperson of the Monetary Policy Committee (MPC) of the Bank of Ghana, Dr. Johnson Asiama, has emphasised the need for greater transparency in decision-making and improved communication of forward-looking guidance as the Committee begins its 123rd regular meeting.
Speaking at the opening session on Monday, March 24, 2025, Dr. Asiama acknowledged growing public concerns that MPC decisions are made behind closed doors without clear, data-driven reasoning.
To address this, he proposed enhancing the accessibility of decision factors, either by publishing voting outcomes or by strengthening the narrative content of policy statements.
“We need to simplify the way we present forecasts so the public and market participants can better understand the underlying policy story. These changes, in my view, will strengthen our credibility and deepen trust in the policy framework,” he stated.
The MPC Chair also provided an overview of the macroeconomic environment in which the meeting is taking place.
“While inflation is easing, it remains uncomfortably high, at over 23 percent, and progress has been slow, particularly on a month-on-month basis. For instance, structural drivers of food inflation remain persistent. The external environment, though currently supportive, is becoming increasingly volatile.
“We’ve seen a strong trade surplus and solid reserve build-up on the back of gold exports and remittance flows. But a possible escalation in global tariff wars, rising geopolitical tensions, and weakening Chinese demand could quickly shift the dynamics. These global factors could also have spillover effects on inflation, capital flows, and exchange rate stability,” he pointed out.
Touching on the domestic front, the BoG Governor said, “The 2024 fiscal outturn was expansionary, with the deficit exceeding program targets. We have seen encouraging signs of consolidation early in 2025, but questions remain as to whether current measures are adequate to anchor expectations and satisfy upcoming IMF program reviews.”
The MPC Chair also highlighted evolving financial conditions, noting increased liquidity in the system and concerns from commercial banks about the Cash Reserve Ratio (CRR) framework.
The Monetary Policy Committee (MPC) of the Bank of Ghana is holding its 123rd regular meetings from Monday, March 24, 2025, to Wednesday, March 26, 2025, to review economic developments over the past two months.
The meetings will conclude with a press conference on Friday, March 28, 2025, where the Committee will announce its decision on the new policy rate.
The current policy rate is pegged at 27%.
MA
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