Bank of Ghana Governor Dr Johnson Pandit Asiama says the return to single-digit inflation signals a turning point in Ghana’s economic recovery but warned that maintaining discipline and ensuring that the current stability translates into real growth must now be the collective priority of the banking sector and policymakers.
Speaking at a Post-Monetary Policy Committee engagement with heads of banks in Accra on Tuesday, Dr Asiama described the economy’s performance as one of “resilience and renewal”, noting that inflation had fallen to 9.4 per cent in September 2025, the first single-digit figure in four years and the ninth consecutive month of decline.
“The return to single-digit inflation marks a new chapter in Ghana’s economic recovery. Our collective responsibility now is to sustain discipline, strengthen the financial system, and ensure that stability translates into jobs, affordable credit, and real growth.” Dr Asiama said.
He attributed the turnaround to consistent monetary policy, prudent liquidity management, and fiscal consolidation. Food inflation dropped to 11 per cent, while non-food inflation eased to 8.2 per cent, reinforcing the downward trajectory.
On growth, the Governor highlighted fresh data from the Ghana Statistical Service, showing that the economy expanded by 6.3 percent in the second quarter of 2025, with non-oil GDP rising by 7.8 percent, driven largely by services and agriculture.
External performance, he said, was equally strong. Ghana recorded a US$6.2 billion trade surplus in the first eight months of 2025, while international reserves climbed to US$10.7 billion, covering 4.5 months of imports. The cedi has appreciated 21 per cent year-to-date, placing it among the world’s top-performing currencies.
Reflecting growing confidence, the Monetary Policy Committee recently cut the policy rate by 350 basis points to 21.5 percent—the third reduction in 2025—to support credit growth while keeping inflation within the medium-term target band of 8 ± 2 percent. Treasury bill rates have since dropped from 13.4 to 10.3 per cent, and average lending rates have eased to 24.2 per cent.
“We expect further improvement as banks realign their pricing models to reflect the easing stance,” Dr Asiama said.
He commended the industry’s resilience, citing a Capital Adequacy Ratio of 17.7 per cent and an improvement in non-performing loans to 20.8 per cent. The Bank has also rolled out new prudential guidelines—including those on large exposures, credit concentration risk, and bancassurance—and extended the transition period for the Outsourcing Directive to December 2025.
Looking ahead, Dr Asiama announced that the central bank would, this month, begin foreign exchange intermediation under the Domestic Gold Purchase Programme, with plans to sell up to US$1.15 billion through transparent, price-competitive auctions to deepen the interbank FX market and reduce volatility.
He urged banks to play a more active role in sustaining the gains by supporting SMEs, agribusinesses, and export-orientated firms, while also adhering to domestic regulatory requirements such as using local insurers for import coverage and pursuing public listings to enhance capital and transparency.
