BoG Warns Of Rising Inflation Risks As Middle East Crisis Deepens
Dr. Johnson Pandit Asiama warned on Monday in Accra that the escalating conflict in the Middle East is emerging as the biggest threat to Ghana's economic stability. He said the conflict and sustained energy price elevation, the convergence of domestic energy supply disruptions and external cost-push pressures risks, "if not addressed could dislodge inflation expectations before they are firmly anchored."
The Governor noted that the IMF has revised downward its 2026 global growth projection from 3.3 percent to 3.1 percent. He also disclosed that inflation has recorded its first increase since December 2024, while Ghana's economy continues to expand according to the IMF's April 2026 World Economic Outlook report. Ghana's current account surplus for the first quarter of 2026 exceeded the same period in 2025 by approximately US$652 million. The government intends to raise US$1 billion through local currency bonds to finance cocoa purchases for the 2026/2027 crop season.
Dr. Asiama confirmed that discussions have advanced toward a new 36-month non-financing Policy Coordination Instrument (PCI), which would succeed the current ECF programme. He cautioned that risks such as elevated energy prices, domestic power supply disruptions, fiscal pressures and current account vulnerabilities remain key threats to the economy and will dominate discussions during the three-day MPC meeting.
Quick Summary
The Bank of Ghana is concerned about economic stability as the Middle East crisis deepens. Rising global energy prices are beginning to fuel inflationary pressures - but what does this mean for recovery efforts?
Summary - read the full story for complete context.
Image: The Chronicle
GhanaFront aggregates news from trusted sources. Click to read the original article.
Keywords
Explore related tagsMore from The Chronicle
Related Stories
More from Business & Economy
Ghana secures hosting rights for 70th UN Tourism Africa summit
Ghana's successful bid to host a prestigious UN Tourism summit in 2027 marks a pivotal moment for the nation's role in shaping Africa's tourism
4h ago•3 min read
MTN Ghana Awards GH¢30,000 to SME Pitch Winners.
Discover how MTN Ghana is empowering local businesses through its latest pitch challenge and what opportunities await the participants.
1d ago•2 min read
Transport Ministry defends diesel locomotives deal, insists assets are modern, cost-effective and reliable
Amidst public scrutiny, the Transport Ministry is clarifying its recent acquisition of diesel locomotives-but what exactly are they defending?
1d ago•4 min read
DVLA warns public against fake fine payment messages
Motorists and the public are urged to exercise caution as a new scam attempts to trick individuals into paying non-existent DVLA fines.
3h ago•2 min read
