Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has underscored the difficult trade-offs involved in central bank decision-making, stressing the need to balance growth and inflation.
Speaking at the Governor’s Roundtable during the Kwahu Business Forum 2026, he pointed to Ghana’s improved macroeconomic performance in 2025, highlighting exchange rate stability.
“The Cedi is stable and under control,” he said.
Dr Asiama explained that central banking is largely about managing competing priorities.
“The work we do is always about trade-offs… trying to strike the right balance.”
He noted that while the economy showed strong signs of recovery, it came at a cost to the central bank.
“Last year was good but expensive for the central bank. It took us a lot of money to mop up excess liquidity and bring inflation down to 5.4% by December 2025.”
According to him, the aggressive monetary operations were necessary to restore stability, but such costs are not expected to persist.
“If you look at where inflation was at the end of December 2024 and where it is now, it wouldn’t involve the same level of resources to keep it low and stable going forward.”
He expressed optimism that maintaining stability in 2026 would require less intervention.
Dr Asiama also stressed the importance of a strong financial sector in sustaining economic growth.
“When banks are strong, they can give more credit.”
He assured the business community that the central bank remains committed to strengthening the financial system to support private sector expansion.
The roundtable marked the climax of the forum, which began on April 3 and brought together business leaders, policymakers, investors, and development partners to discuss strategies for economic growth.
Among those in attendance were Julius Debrah, Rita Akosua Adjei Awatey, Seth Terkper, and Marietta Agyeiwaa Brew.
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