The Bank of Ghana (BoG) has reaffirmed its commitment to Ghana’s economic recovery, promising to support growth-oriented initiatives without reversing the significant macroeconomic gains achieved over the past year.
In a statement issued after an emergency Monetary Policy Committee (MPC) meeting on July 17, the central bank cited strong improvements in inflation, foreign reserves, the cedi’s strength, and external sector performance as proof of stabilizing conditions.
“The Committee noted significant improvements in the current macroeconomic conditions and the positive outlook,” the BoG stated. “We will support the recovery process without compromising the gains achieved so far.”
Headline inflation dropped for the sixth straight month to 13.7% in June 2025, down from 23.8% in December 2024. Core inflation trends also suggest that expectations are stabilizing, bolstered by policy consistency from the BoG.
Ghana’s economy grew 5.3% (real GDP) in the first quarter of 2025. Non-oil GDP rose by an even stronger 6.8%, with agriculture and services leading the charge. The figures point to a broad-based recovery, reversing the setbacks from the COVID-19 and debt crises.
The external sector recorded a provisional trade surplus of US$5.6 billion and a current account surplus of US$3.4 billion in H1 2025, sharply up from 2024.
Thanks to inflows from gold, cocoa, remittances, and investor confidence, the Ghanaian cedi has appreciated 42.6% year-to-date against the U.S. dollar—a dramatic turnaround. The country’s gross international reserves also rose to US$11.1 billion by June 2025, covering 4.8 months of imports, up from US$8.98 billion at end-2024.
“Our current position reflects strong policy coordination, external inflows, and improved confidence,” the central bank noted.
Despite the local momentum, BoG warned that global economic uncertainty could dampen external conditions. Global growth is projected to slow to 2.8% in 2025, from 3.3% in 2024, with tight financial conditions and uneven inflation trends across major economies.
The central bank clarified that the emergency MPC meeting was not a deviation from standard protocol, but a preemptive measure to maintain economic stability.
The next regular MPC meeting is scheduled for July 28–30, 2025, when a new policy rate decision will be announced.
Source: Starrfm.com.gh
