The Governor of the Bank of Ghana, Dr Johnson Asiama, says Ghana’s record low inflation levels are the result of prudent economic management, particularly within the country’s monetary policy framework.
According to him, the sharp appreciation of the cedi and the central bank’s sterilization measures have played a crucial role in reducing inflation to historic levels. He explained that these monetary interventions helped stabilize prices and strengthen macroeconomic conditions.
Dr Asiama made the remarks in an explanatory note to JoyBusiness on March 4, 2026, where he addressed key economic developments including inflation trends, the Bank of Ghana’s financial performance, the Gold for Reserve Programme and the outlook for the cedi.
Ghana’s inflation rate dropped further to 3.3 per cent in February 2026, from 3.8 per cent recorded in January. This marks a significant decline compared to the 23.1 per cent recorded in the same period last year.
The central bank maintains that its inflation-targeting framework remains one of its core mandates. Analysts have also credited the Bank’s monetary policy actions for the recent stability of the cedi and the sharp decline in inflation.
However, some analysts argue that the policy measures used to achieve the current stability have come at a cost to the central bank, particularly through sterilization operations used to control liquidity in the economy.
Touching on concerns about losses linked to the Gold for Reserve Programme, Dr Asiama noted that the associated fees and charges have been reduced significantly. According to him, the charges under the programme have now been cut by half.
Despite these costs, the Governor emphasized that the broader economic gains such as the cedi’s strong appreciation and historically low inflation should be considered when assessing the Bank’s financial performance.
He added that the cedi has appreciated by more than 40 per cent, describing it as the best performance in the country’s history, although he acknowledged that these achievements came with short-term costs as part of broader economic reforms.
Looking ahead, Dr Asiama expressed confidence that the Bank of Ghana will not record similar losses in 2025 and 2026, noting that declining sterilization costs and easing inflation will improve the central bank’s financial position.
He stressed that the losses recorded in recent years should be viewed as a one-time cost associated with stabilizing the economy and resetting macroeconomic fundamentals.