Decisions taken must support ongoing economic recovery – Dr. Asiama tells MPC members

Decisions Taken Must Support Ongoing Economic Recovery – Dr. Asiama Tells MPC Members

As Ghana continues its gradual path toward economic recovery, former Deputy Governor of the Bank of Ghana, Dr. Johnson Asiama, has urged members of the Monetary Policy Committee (MPC) to adopt policy stances that not only contain inflation but also bolster confidence and stimulate growth.

Speaking ahead of the upcoming MPC meeting, Dr. Asiama noted that the decisions taken in the coming quarters will be crucial in maintaining the momentum of Ghana’s economic rebound, particularly as the country navigates post-DDEP adjustments, tight fiscal space, and fragile investor sentiment.

“At this stage of our recovery, the focus should not only be on inflation control but on balanced policy measures that support real sector growth, encourage investment, and protect livelihoods,” he said.

Inflation Easing, But Growth Still Fragile

Ghana’s inflation rate has been on a downward trend since peaking in 2022, thanks to tightened monetary policy and fiscal discipline under the IMF-supported recovery program. However, real sector performance—especially in manufacturing, construction, and SME activity—remains below pre-pandemic levels.

Dr. Asiama warned that overly tight monetary policy could choke private sector credit and stall economic gains made since the implementation of the Domestic Debt Exchange Programme (DDEP) and other macroeconomic reforms.

“We need to strike the right balance. Inflation is falling, but unemployment is still a concern. The MPC must weigh the cost of continued high policy rates on business activity, especially for small and medium enterprises,” he added.

A Call for Data-Driven, Growth-Sensitive Policy

The former deputy governor emphasized the need for data-driven decision-making within the central bank and encouraged members of the MPC to look beyond short-term inflation targets to consider broader macroeconomic indicators such as:

• Private sector credit growth

• Currency stability

• Real GDP growth trends

• Business confidence levels

• Job creation rates

He urged the MPC to maintain clear communication with market participants to reduce uncertainty and help anchor inflation expectations while supporting investment decisions in the real economy.

Looking Ahead: What to Expect

The MPC is expected to announce its next monetary policy rate decision within the week. While some analysts expect a cautious rate hold due to sticky inflation risks, others argue that there is scope for a mild rate cut to support lending and recovery.

Dr. Asiama’s intervention adds to the growing debate on how best to transition Ghana’s monetary policy from a crisis-response mode to a recovery-supportive framework.

As the country enters a delicate phase of economic reconstruction, the message is clear: monetary policy decisions must not only tame inflation—they must also give room for Ghana to breathe, grow, and rebuild.