Governor of the Bank of Ghana, Dr Johnson Asiama, has attributed the sharp decline in inflation to sustained fiscal and monetary discipline, improved food supply conditions, and strong coordination between key state institutions.
According to the Governor, the progress achieved was deliberate and policy-driven. “Certainly, Nana, these have not happened by accident; it is the result of sustained monetary discipline that we brought on board, the improved food supply conditions that existed throughout 2025, and the closer coordination across key policy institutions, particularly the Bank of Ghana and the Ministry of Finance,” he said.
Dr Asiama made the remarks on Wednesday, January 7, when the Asantehene, Otumfuo Osei Tutu II, paid a courtesy call to the Bank of Ghana’s headquarters in Accra. He used the occasion to highlight significant improvements in Ghana’s inflation outlook and external position. He disclosed that inflation, which stood at 23.8 per cent in December 2025, has declined steadily over the past year.
“By October 2025, inflation had dropped to 8 per cent. In November, it declined further to 6.3 per cent, and this morning, we woke up to the news that inflation for December, that is the end of last year, has fallen to 5.4 per cent,” he announced. Dr Asiama explained that the disinflation has been broad-based, cutting across both food and non-food items, and has created room for a cautious easing of monetary policy.
“As inflation pressures eased and expectations began to re-anchor, the Bank of Ghana was able to recalibrate its policy stance. The monetary policy rate has been reduced in steps from 27 per cent to 18 per cent as of our last meeting in November,” he said.
He added that the adjustments were carefully sequenced to safeguard the gains already made. “We struck a balance between preserving hard-won disinflation gains and supporting recovery in credit and economic activity,” he noted.
On Ghana’s external buffers, the Governor said the country’s gross international reserves have reached historic levels. “Our gross international reserves have risen to above 13.8 billion dollars, and this is historic. I joined the bank in 1995, and I have never seen such figures,” he stated.
According to him, the reserves now provide close to six months of import cover, a development he described as unprecedented in the central bank’s history. “Our trade performance has improved, and confidence in macroeconomic management has strengthened,” He added.
Touching on exchange rate performance, Dr Asiama said the cedi ended 2025 stronger than anticipated. “The cedi ended the year stronger than many would have anticipated. According to Forbes, a year-end level of about 10.67 to the US dollar placed the cedi among the stronger performing currencies on the African continent,” he said. However, he cautioned that currency stability must be continuously earned.
“Exchange rate stability is not something that can be declared. It must be earned continuously. A currency remains strong only when the economy beneath it is productive, competitive, and disciplined,” he added. He stressed that sustaining the gains would require difficult national choices, including “fiscal restraint instead of excess, production over consumption, exports over imports, and long-term thinking over short-term comfort.”
Dr Asiama reaffirmed the central bank’s commitment to protecting the progress made. “The Bank of Ghana is fully committed to playing its role firmly, independently and professionally, so that the gains we are beginning to see will become durable and inclusive,” he said.
