BoG Governor warns of risks despite signs of macroeconomic stability

Dr. Johnson Asiama, Governor of the Bank of Ghana (BoG), spoke about Ghana's economy. He noted early signs of stabilization but warned that risks remain.

Inflation is improving but still vulnerable to various factors. These include potential second-round effects and food supply constraints from northern Ghana and the Sahel. External price shocks are also a concern due to global commodity market volatility.

Dr. Asiama addressed the 124th Monetary Policy Committee (MPC) Meetings in Accra. Inflation fell to 21.2 percent in April 2025. However, it is still above the central bank’s target range of 8 ± 2 percent and the upper limit of 19 percent.

He mentioned geopolitical tensions and global trade dynamics as sources of uncertainty. Recent US-led tariff disputes have added to this market instability. These trends could impact commodity prices, exchange rates, and financial flows in emerging markets like Ghana.

Dr. Asiama highlighted the importance of MPC discussions. The Committee will evaluate if current policies can reduce inflation without harming fragile economic growth. Key areas of focus include exchange rate sustainability and returning market confidence.

Despite challenges, Ghana has reached a Staff-Level Agreement with the IMF for its Fourth Review under the Extended Credit Facility (ECF) Programme.

Standards and Poors upgraded Ghana’s sovereign rating from selective default to CCC+. External reserves have improved, trade balance has strengthened, and consumer confidence is rising along with business indices.