As the Bank of Ghana’s Monetary Policy Committee (MPC) opens its first meeting of 2026, Governor Dr Johnson Pandit Asiama has urged members to focus on safeguarding recent macroeconomic gains through careful and forward-looking monetary policy decisions.
The three-day 128th MPC meeting, which began on Monday, is expected to culminate in a decision on the policy rate on Wednesday, January 26, after a comprehensive review of domestic and global economic conditions. Key areas under consideration include inflation dynamics, exchange rate movements, financial sector stability and external developments marked by ongoing geopolitical uncertainty.
Addressing the Committee at the opening of the meeting, Dr Asiama cautioned against complacency despite the improving economic indicators. He stressed that the task before the MPC was not to celebrate progress, but to determine how best to respond to it in a way that ensures durability and credibility.
“This meeting is not about applauding improvements. It is about how we respond to those improvements and ensure that the decisions we take today can withstand scrutiny tomorrow,” he said, adding that monetary policy choices required sound judgment and balance rather than mechanical responses.
The Governor outlined four critical considerations that would guide deliberations: the pace and sequencing of any policy adjustment, foreign exchange stability and market expectations, the sustainability of the domestic gold purchase programme, and the integrity of data that underpins policy decisions amid external scrutiny.
While acknowledging that economic indicators were currently favourable, Dr Asiama said the work of consolidating stability had only just begun. “We need to put in more effort going forward to lock in the stability we are seeing,” he noted.
Reviewing developments in 2025, the Governor pointed to a sharp decline in inflation to 5.4 per cent by year-end, alongside a significant build-up in external buffers, with gross international reserves rising above US$13.8 billion—equivalent to 5.7 months of import cover.
He also highlighted a current account surplus of 8.1 per cent of GDP and strong economic growth through the third quarter of 2025, trends which he said had boosted confidence among businesses and consumers.
On the global front, Dr Asiama said growth prospects remained resilient, with projections of about 3.3 per cent into 2026, even as geopolitical risks persisted. Ghana, he noted, had benefited from favourable external conditions, particularly elevated gold prices.
“These outcomes confirm that recent policy choices are yielding results and that policy credibility has been restored,” he said, while warning that such favourable conditions might not be permanent.
Dr Asiama concluded by urging disciplined policy implementation, credible communication and strict adherence to the Bank’s mandate, stressing that the Committee’s central responsibility was to calibrate policies that support growth while preserving hard-won credibility and stability.
