Financial institution of Ghana Governor Dr. Johnson Asiama has revealed that the Central Financial institution is now concentrating on an end-year inflation price of 12 per cent for 2025.
Talking to JoyBusiness on the sidelines of the IMF/World Financial institution Spring Conferences, he stated the revised goal relies on new financial measures by the Financial institution of Ghana, alongside complementary fiscal actions by the federal government.
“Take a look at what is going on to the cedi, in addition to the coverage motion taken on the final Financial Coverage Committee assembly—that ought to assist deal with meals inflation and ship decrease inflation going ahead,” he said.
Dr. Asiama confirmed that the following Financial Coverage Committee (MPC) assembly is scheduled for Could 22, 2025. “I can guarantee you that the Financial institution of Ghana will take the required actions based mostly on our information,” he added.
The revised 12 per cent goal marks a pointy reduce from the sooner projection of 16 per cent for 2025.
If achieved, it may symbolize one of many lowest inflation charges Ghana has recorded lately. Some analysts counsel it could possibly be the bottom in 4 years.
Inflation slowed for the third consecutive month in March 2025, reaching 22.4 per cent, down from 23.1 per cent in February.
This pattern has strengthened expectations that inflation may proceed to ease within the months forward.
At its final assembly, the MPC raised the coverage price by 100 foundation factors to twenty-eight per cent in an effort to curb inflation.
Some analysts now consider the Financial institution might must hike charges once more in Could, together with different financial measures, to satisfy the revised goal.
The Worldwide Financial Fund has additionally backed additional tightening of financial coverage.
In an announcement following Ghana’s staff-level settlement with the IMF, the Fund famous, “The following tightening within the financial coverage stance, along with the continued fiscal consolidation, is predicted to convey inflation down.”
In its Africa Regional Financial Outlook, the IMF projected that Ghana would finish 2025 with an inflation price of 17.5 per cent—considerably increased than the 11.9 per cent forecast within the 2025 Finances by Finance Minister Dr. Ato Forson.
The IMF expects Ghana’s inflation to fall additional to 9.4 per cent by the tip of 2026, doubtlessly bringing the nation nearer to reaching single-digit inflation for the primary time in years.
Within the 2025 Finances, Dr. Forson introduced the federal government’s purpose of ending the yr with an inflation price of 11.9 per cent, as a part of broader efforts to stabilise the financial system.
Nonetheless, some economists, together with Professor Peter Quartey, have described the federal government’s inflation goal as overly formidable.
He argued that, given the present financial challenges, reaching that purpose could also be troublesome.
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