Bank of Ghana (BoG) Governor, Dr. Johnson Asiama, says Ghana’s record low inflation levels reflect prudent management of the economy, particularly in the monetary sector.
According to him, the sharp appreciation of the cedi and the Bank of Ghana’s sterilisation measures have played a key role in bringing inflation down to historic levels.
The Governor noted that “it is because of the sharp appreciation of the cedi and the prudent sterilisation measures that have also helped in delivering this record inflation”.
Dr. Asiama disclosed this to JoyBusiness in an explanatory note on economic developments on March 4, 2026.
The discussion covered inflation trends, the Bank of Ghana’s recent losses, the Gold for Reserve Programme, and the outlook for the cedi.
Analysts on recent economic developments
Inflation targeting remains one of the Bank of Ghana’s core mandates. In recent months, some analysts have credited the central bank for the cedi’s stability and the sharp decline in inflation.
They point to the Bank's deployment of various monetary policy tools to contain price pressures last year and into 2026.
However, some analysts argue that these policy interventions came at a high cost to the central bank, particularly in the area of sterilisation.
Ghana’s inflation rate declined further to 3.3 per cent in February 2026, down from 3.8 per cent in January and a sharp drop from 23.1 per cent recorded in the same month last year.
In its January Monetary Policy Report, the Bank of Ghana projected that inflation would trend toward the lower end of its medium-term target of 8 ± 2 per cent in 2026.
The central bank said this projection is based on the combined impact of maintaining an appropriate monetary policy stance, ongoing fiscal consolidation, and adequate reserve buffers.
Economic cost of low inflation and appreciating cedi
Touching on the Gold for Reserve Programme and concerns about its associated costs and recent losses, Dr Asiama said the programme's fees and charges have been significantly reduced.
According to him, the associated fees and charges under the G4R programme, which previously contributed to the Bank’s losses, have now “reduced by half”.
The Governor added that although inflation has dropped to 3.3 per cent and the cedi has appreciated by more than 40 per cent — the best performance in Ghana’s history — these gains came at a cost.
He explained that “this was delivered at a cost, and as reforms continue, these costs will drop sharply”.
Dr. Asiama also said that the losses recorded by the Bank of Ghana in 2024 and any financial position recorded in 2025 must be interpreted within the proper economic context.
Responding to questions about the Bank’s inflation targeting programme, the Gold for Reserve initiative, and the associated costs, the Governor argued that the broader economic benefits should be considered.
He asked what the real benefit to the economy had been over the past year despite the losses posted.
He further questioned whether the policies had led to a sharp appreciation of the cedi and historically low inflation, and what the overall gains had been for Ghanaians.
Cedi’s outlook and BoG’s position for 2026
Dr. Asiama expressed confidence that the Bank of Ghana will not record similar losses in 2025 and 2026.
According to him, “In 2026, the cedi won’t drop by that much again, hence the losses will not be repeated”.
He also pointed to declining sterilisation costs as inflation continues to fall.
“Secondly, now that inflation is at 3.3%, and the policy rate is coming down, sterilisation costs will drop significantly.”
The Governor said these developments will positively impact the Bank of Ghana’s financial position this year.
He added that losses linked to Goldbod would be borne by government after the associated costs were reduced by half.
As a result, he said the profit-and-loss pressures currently being discussed represent a one-time cost associated with resetting the economy.
Dr. Asiama maintained that “These losses will not be repeated in 2026”.
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