Ghana’s Monetary Policy Committee (MPC) will today hold a press conference to announce new developments in the economy amid growing optimism that the country’s economy is transitioning from a recovery phase into a period of real expansion, the Bank of Ghana (BoG) has indicated.
Governor Dr. Johnson Asiama, speaking ahead of the 127th MPC meeting, highlighted that the economy has performed better than expected in recent months, with growth momentum now more broadly distributed across multiple sectors rather than concentrated in a few industries.
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“What stands out this quarter is the broad momentum in economic activity. Growth has been stronger and more diversified than anticipated,” Dr. Asiama said at the opening of the Committee meeting on November 24.
The Ghanaian economy recorded a 6.3 per cent GDP growth in the first half of 2025, buoyed by strong performance in services and agriculture.
Non-oil GDP surged to 7.8%, while high-frequency indicators, such as the Composite Index of Economic Activity, show an increase of about 9 per cent.
These trends suggest the negative output gap is narrowing and the country is steadily moving from recovery toward sustained expansion.
Dr. Asiama attributed this progress to deliberate policy measures, including sustained fiscal discipline, a cautious but firm monetary stance, and structural reforms, particularly in foreign exchange operations and external reserve management.
He also cited the 2026 Budget as reinforcing fiscal prudence while prioritising growth and job creation as central objectives for the economy’s next phase of transformation.
Despite these positive signals, the Governor warned of persistent global risks that could spill over into Ghana.
Geopolitical tensions, commodity price swings, and tighter external financial conditions continue to create uncertainty for emerging markets.
Domestically, businesses are still grappling with high taxes, rising utility tariffs, and elevated credit costs, which could weigh on growth and competitiveness.
The MPC, Dr. Asiama noted, faces three key priorities in its deliberations: maintaining the pace of disinflation without stifling growth, strengthening reforms in the foreign exchange market, and ensuring financial sector stability to support effective credit transmission.
“With inflation expected to settle between 4–6 per cent by year-end and stabilise around the target band in 2026, Ghana is entering what could become a multi-year period of price stability,” the Governor said.
“Our task is to protect the stability we have achieved while supporting recovery in the real sector. The decisions we take today must reinforce confidence, signal predictability, and keep the economy on its path toward higher, job-rich growth.”
Market analysts and investors are closely watching the MPC’s announcement, which could set the tone for interest rate adjustments, credit availability, and broader financial market sentiment in the months ahead.
A carefully calibrated easing cycle appears possible given moderated money supply growth, elevated real interest rates, and the need to sustain the country’s growth trajectory while safeguarding stability.
Today’s MPC report is expected to provide clarity on whether the BoG will maintain its current monetary stance or signal a gradual shift to support continued economic expansion.
With the economy showing stronger fundamentals and broader-based growth, all eyes remain on the Committee’s policy decisions and their potential impact on inflation, investment, and job creation.
