Ghana’s recent economic gains may signal recovery, but they have come with significant financial strain on the central bank, according to Dr Johnson Pandit Asiama, Governor of the Bank of Ghana.
Speaking at the Governor’s Roundtable during the Kwahu Business Forum 2026, Dr Asiama revealed that the effort to stabilise inflation and the local currency required heavy monetary intervention, placing a substantial burden on the central bank.
Despite improved indicators—such as declining inflation and a more stable cedi—he stressed that these achievements did not come easily. The central bank had to deploy significant resources to absorb excess liquidity and restore price stability. By December 2025, inflation had dropped to 5.4%, a milestone he described as both necessary and costly.
Dr Asiama underscored the difficult balancing act faced by central banks, where decisions to control inflation can limit credit availability and slow business growth. According to him, monetary tightening, while effective in stabilising the economy, can constrain lending and impact private sector expansion.
Looking ahead, however, he expressed cautious optimism. With inflation now under control, he suggested that maintaining stability may require less aggressive—and less expensive—interventions than in previous years.
He also highlighted the critical role of a resilient financial sector, noting that stronger banks are better positioned to extend credit and support businesses, which is essential for sustaining economic growth.
The forum, which began on April 3, brought together policymakers, investors, and business leaders to explore strategies for driving private sector development. Key government officials in attendance included Julius Debrah, Rita Akosua Adjei Awatey, Seth Terkper, and Marietta Agyeiwaa Brew.
