‘Business, consumer sentiments improve significantly’ – BoG

The Bank of Ghana reports improved economic activity. Governor Johnson Asiama noted better business and consumer sentiments.

On March 28, 2025, he briefed journalists after the Monetary Policy Committee (MPC) meeting. The MPC assessed recent economic developments and inflation risks. Dr. Asiama shared that the Composite Index of Economic Activity (CIEA) rose by 5.7% year-on-year in January 2025. This is up from 3.5% in January 2024.

The increase was driven by higher consumption, international trade, and private sector credit growth. Confidence surveys from February 2025 showed significant improvements in consumer and business sentiments. These improvements were fueled by expectations for a better macroeconomic environment.

To address inflation, the MPC raised the policy rate by 100 basis points to 28%. They aim to re-anchor the disinflation process with this adjustment. The Committee plans to reassess policy easing as inflation stabilizes.

Alongside the rate hike, the central bank will implement additional measures. They will introduce a new 273-day instrument to enhance liquidity management. The BoG will also monitor banks’ Net Open Positions (NOPs) for compliance. Lastly, they will review the Cash Reserve Ratio (CRR) structure to evaluate its impact on liquidity and financial intermediation.