Editorial: Anchoring inflation and absorbing surplus liquidity

The Bank of Ghana (BoG) is committed to controlling inflation. This effort supports Ghana's IMF-backed reform program.

BoG emphasizes the importance of tight liquidity management. They believe it is essential for maintaining disinflation.

In just four months of 2025, BoG has managed to mop up nearly 60 percent of the total money supply for 2024. The total amount for 2024 is GH¢134 billion. This shows BoG's intensified efforts to stabilize the economy.

OMO instruments are now central to BoG’s strategy. The central bank recently introduced a 273-day sterilization bill. They also launched a review of the cash reserve ratio framework.

These actions aim to strengthen monetary policy transmission. Early results show promise, as headline inflation dropped to 21.2 percent in April from 22.4 percent in March. This is significantly lower than the 41.2 percent rate from a year ago.

Investor interest remains strong, driven by positive economic sentiment and stable exchange rates during auctions.