Ghana’s Stability Came at a Price – BoG Governor Reveals Costly Fight to Tame Inflation

The Governor of the Bank of Ghana, Johnson Pandit Asiama, has revealed that Ghana’s recent economic stability came at a steep financial cost, despite signs of recovery. Speaking at the Governor’s Roundtable during the Kwahu Business Forum 2026, Dr Asiama explained that aggressive monetary measures were required to stabilise the economy, particularly in reducing inflation and controlling liquidity. “Last year was good but expensive for the central bank. It took us a lot of money to mop up excess liquidity and bring inflation down to 5.4% by December 2025,” he stated. According to him, central banking is a constant balancing act—where efforts to control inflation can impact credit availability and business expansion. “The work we do is always about trade-offs… trying to strike the right balance,” he noted, highlighting the difficult choices policymakers must make. Dr Asiama pointed to gains made so far, including a stable cedi and easing inflation, but cautioned that these outcomes required significant intervention. Looking ahead, he expressed optimism that maintaining low inflation may not demand the same level of resources going forward, given the progress made since late 2024. He also stressed the importance of a resilient banking sector in driving economic growth, noting that stronger banks are better positioned to extend credit to businesses. The roundtable marked the conclusion of the 2026 Kwahu Business Forum, which brought together key stakeholders—including Julius Debrah, Rita Akosua Adjei Awatey, Seth Terkper, and Marietta Agyeiwaa Brew—to explore policies aimed at boosting business growth and strengthening the economy.