Gains In Inflation Control Often Come At A Significant Cost -Asiama
Dr. Johnson Pandit Asiama, Governor of the Bank of Ghana, highlighted on Sunday, April 5, 2026 at the Kwahu Business Forum Governor's Roundtable that "gains in inflation control often come at a significant cost." He reflected on Ghana's economic performance in 2025 and its implications for businesses. He noted that while the country recorded strong macroeconomic indicators, including a stable exchange rate and declining inflation, these achievements required substantial intervention by the Central bank.
Dr. Asiama said that policymaking at central banks is always about balancing competing priorities. He explained that 2025 was a year of improved economic performance, but it came at a high financial cost to the central bank. He said it took significant resources to bring inflation down to 5.4% by December 2025. Ghana's inflation rate declined sharply from 23.8% in December 2024 to 5.4% by December 2025. He assured the business community that the central bank remains committed to strengthening the banking system to improve access to credit.
Dr. Asiama expressed optimism about the outlook for 2026, noting that maintaining low inflation would require fewer resources going forward. He reiterated that such heavy costs are unlikely to recur in 2026, given the current low inflation environment now below 4%.
Quick Summary
Dr. Johnson Asiama of the Bank of Ghana recently spoke about the complexities of stabilising Ghana's economy. He touched on the balancing act between controlling inflation and the potential repercussions of such measures - especially for the central bank.
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