BoG commences comprehensive review of monetary policy implementation framewo

The Bank of Ghana is reviewing its monetary policy framework.

Governor Dr. Johnson Asiama announced this change. The bank will move from the unremunerated Cash Reserve Ratio. It will adopt a more active Open Market Operations regime. This includes using longer-tenor BoG instruments.

The goal is to enhance policy transmission and improve liquidity management. It also aims to allow more credit expansion for the private sector.

Before the 3-day Monetary Policy Committee (MPC) meeting, the Governor spoke about key issues. He emphasized assessing if the current monetary policy can drive disinflation without harming growth.

He raised important questions about exchange rate appreciation and market confidence. He also mentioned how these factors affect medium-term inflation forecasts.

The Governor stressed the importance of the post-meeting communiqué. It should clearly explain policy decisions and recent economic trends. This transparency is vital for maintaining public trust in price stability.

He encouraged the team to approach the meeting with professionalism and independence. The credibility of the committee relies on responding effectively to economic changes.

With these remarks, he officially opened the 124th Meeting of the Monetary Policy Committee.