BoG warns global oil price volatility could heighten inflation risks for Ghana

Dr. Johnson Asiama, Governor of the Bank of Ghana (BoG), warned at the opening of the 131st MPC meeting that renewed tensions in the Middle East and rising global oil prices could pose fresh inflation risks for Ghana. He stated that global economic developments have broadly evolved as expected since the last meeting, but downside risks have become more pronounced. Dr. Asiama noted that Brent crude climbed above 85 dollars per barrel earlier this week due to renewed hostilities around the Strait of Hormuz, which reignited volatility in energy markets.

He explained that the persistence of elevated energy prices has slowed the anticipated pace of global disinflation and prompted several central banks to reassess the timing of further easing. For Ghana, as a commodity exporting yet energy importing economy, these developments reinforce the need to assess carefully the extent to which external cost pressures may influence the domestic inflation outlook over the policy horizon. The MPC would also assess how continued volatility in global oil markets could affect Ghana's balance of payments, foreign reserves, and exchange rate. Dr. Asiama added that Ghana's external buffers remain a source of resilience.