Bank of Ghana Governor Dr. Johnson Asiama Addresses Monetary Policy Committee
Geared to reduce inflation
By Isaac Okyere
Dr. Johnson Asiama, Governor of the Bank of Ghana, welcomed members to the 123rd regular meeting of the Monetary Policy Committee (MPC), acknowledging the critical role of the committee in Ghana’s economic journey.
Asiama, who previously served as Deputy Governor, emphasized the need to strengthen two institutional areas: transparency of the decision-making process and communication of forward-looking guidance.
He proposed implementing mechanisms to make the committee’s decision factors more accessible, such as publishing voting outcomes or enhancing policy statements.
The governor highlighted Ghana’s macroeconomic context, noting that while inflation is easing, it remains high at over 23 percent.
He cited structural drivers of food inflation, a volatile external environment, and domestic fiscal challenges as key concerns.
Asiama emphasized the importance of reflecting on past monetary and fiscal policy missteps to strengthen institutions and avoid repeating mistakes.
He also underscored the need to address deeper structural issues, such as underinvestment in agriculture and persistent exchange rate misalignments.
The MPC faces a convergence of risks, including stubborn inflation, elevated liquidity, and growing external uncertainty. However, Asiama noted that Ghana has buffers, including strong reserves, improving sentiment, and a credible policy framework, to guide its decision-making.
The governor declared the 123rd meeting of the MPC open, inviting the team to begin with a macroeconomic briefing. The committee’s task is to weigh developments rigorously and reach a policy stance that reinforces the disinflation path without undermining the recovery or destabilizing market expectations.
