BoG modernises monetary policy approach

The Bank of Ghana (BoG) is changing its monetary policy framework.

It will move to a more active open market operations regime.

This new approach will include longer-tenor BoG instruments.

Dr. Johnson Asiama, the Governor of BoG, announced this change.

He spoke at the 124th Monetary Policy Committee (MPC) Meeting in Accra.

The goal is to enhance policy transmission and improve liquidity management.

It also aims to expand access to credit for the private sector.

Dr. Asiama highlighted the need to assess the current monetary stance.

He wants to ensure it drives disinflation without harming economic growth.

He raised concerns about exchange rate appreciation sustainability and market confidence stability.

These factors impact medium-term inflation forecasts.

The Governor stressed that the post-meeting communiqué must clarify policy decisions.

It should provide a transparent economic overview to maintain public trust.

He urged committee members to deliberate with professionalism and independence.

The MPC’s credibility relies on its ability to respond decisively to economic changes.