The Bank of Ghana (BoG) has begun a comprehensive review of its monetary policy framework. It’s shifting toward more dynamic tools to manage liquidity and support private sector growth.
This means the Central Bank will be prioritising enhanced Open Market Operation which will include longer-tenor BoG instruments.
It will be a transition from reliance on the unremunerated Cash Reserve Ratio to a more active Open Market Operations regime.
Governor Dr. Johnson Asiama notes, the review will strengthen policy direction and maintain disinflation efforts without derailing the fragile economic recovery.
This is intended to enhance policy transmission, improve liquidity management, and allow greater room for credit expansion to the private sector”, he said at the opening of the 124th MPC meeting opening in Accra.
Dr. Asiama noted that while inflation is easing, it remains susceptible to second-round effects, persistent food supply disruptions from northern Ghana and the Sahel and external price shocks due to volatile global commodity markets.
Geopolitical tensions and evolving global trade dynamics, including the recent US-led tariff disputes, have heightened market uncertainty and could affect commodity prices, exchange rates, and financial flows in emerging markets like ours”, he added.
The Bank of Ghana also signalled plans to deepen key monetary and regulatory reforms to sustain the recent momentum of the cedi, which has appreciated by nearly 19 percent year-to-date.
The appreciation reflects a combination of factors, including prudent monetary policy, improved market sentiment and external sector gains, he said.
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