{"id":15595,"date":"2026-04-10T13:58:56","date_gmt":"2026-04-10T13:58:56","guid":{"rendered":"https:\/\/gnbcc.net\/?p=15595"},"modified":"2026-04-10T13:59:01","modified_gmt":"2026-04-10T13:59:01","slug":"inflation-fight-costly-but-outlook-eases-for-2026-asiama","status":"publish","type":"post","link":"https:\/\/gnbcc.net\/inflation-fight-costly-but-outlook-eases-for-2026-asiama\/","title":{"rendered":"Inflation fight costly but outlook eases for 2026 \u2013 Asiama"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Bank of Ghana Governor Dr. Johnson Pandit Asiama, on Sunday 5 April, participated in the Kwahu Business Forum Governor\u2019s Roundtable session to discuss economic development and its impact on the business community.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Governor Asiama used the occasion to reflect on the country\u2019s economic progress in 2025, highlighting the difficult policy decisions central banks face globally. Touching on inflation, which is of particular interest to the business community, Dr. Asiama explained that the current low inflation rate had come at a huge cost to the central bank.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe cedi is stable and under control,\u201d he said, emphasising the unique position of central banks and the trade-offs influencing their decisions, adding: \u201cThe work we do is always about trade-offs\u2026 trying to strike the right balance.\u201d<\/p>\n\n\n\n<figure class=\"wp-block-image\"><img decoding=\"async\" src=\"https:\/\/ads.thebftonline.com\/www\/delivery\/lg.php?bannerid=0&amp;campaignid=0&amp;zoneid=133&amp;loc=https%3A%2F%2Fthebftonline.com%2F2026%2F04%2F08%2Finflation-fight-costly-but-outlook-eases-for-2026-asiama%2F&amp;referer=https%3A%2F%2Fwww.google.com%2F&amp;cb=d57558845d\" alt=\"\"\/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Dr. Asiama explained that achieving the right balance between policies affecting growth and inflation is crucial. He acknowledged the positive impact of the strong macroeconomic performance in 2025 on the broader economy, but noted associated costs to the central bank.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cLast year was good but expensive for the central bank. It took us a lot of money to mop up excess liquidity and bring inflation down to 5.4 percent by December 2025,\u201d he stated.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He further explained that the central bank\u2019s monetary operations aimed to drain excess liquidity and while the cost was high in 2025, he is confident that 2026 will be different.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIf you look at where inflation was at the end of December 2024 and where it is now, it won\u2019t involve the same level of resources to keep it low and stable going forward.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The central bank Governor concluded by stating the importance of collaboration, assuring the business community that the central bank aims to strengthen the markets. \u201cWhen banks are strong, they can give more credit.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">One of the central bank\u2019s core mandates is to maintain economic stability through inflation to ensure that it remains low and stable. Stable inflation helps economies grow \u2013 and in establishing it central banks face difficult policy choices.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The choices are difficult because the tools used to mop up excess liquidity from the economy come with heavy cost, which often impairs the central bank balance sheet. In the Bank of Ghana\u2019s case, BoG bills which commercial banks buy are costly \u2013 especially looking at the impact of policy rates on the issuance of such bills. Other central banks and monetary authorities \u2013 like the US Federal Reserve and European Central Bank \u2013 face similar challenges.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A cursory look at the 2025 inflation rate shows that it dropped from 23.8% at end-December 2024 to 5.4% at end-December 2025. Reducing inflation by such a magnitude couldn\u2019t be cheap for the central bank \u2013 and at the last Monetary Policy Committee press briefing the Governor hinted that cost of Open Market Operations (the Bank\u2019s activities on the market) went up significantly in 2025 because of the mopping up exercise.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">But central banks can\u2019t stand aloof and allow inflation to take a chunk off the disposable incomes of citizens because of cost. Whereas incomes may remain the same, every inch-up of inflation affects the population\u2019s real incomes. Looking ahead, Governor Asiama has assured that the 2025 OMO cost will not be repeated in 2026 because of the current low and stable inflation environment .<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And the maths confirm this. In 2025 inflation was reduced by 18.4 percentage points \u2013 and with current inflation at below 4 percent there should not be so much difficulty in maintaining stability during 2026.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Click <a href=\"https:\/\/thebftonline.com\/2026\/04\/08\/inflation-fight-costly-but-outlook-eases-for-2026-asiama\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\"><strong>here<\/strong> <\/a>for source.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Bank of Ghana Governor Dr. Johnson Pandit Asiama, on Sunday 5 April, participated in the Kwahu Business Forum Governor\u2019s Roundtable session to discuss economic development and its impact on the business community.<\/p>\n","protected":false},"author":1,"featured_media":15596,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_bbp_topic_count":0,"_bbp_reply_count":0,"_bbp_total_topic_count":0,"_bbp_total_reply_count":0,"_bbp_voice_count":0,"_bbp_anonymous_reply_count":0,"_bbp_topic_count_hidden":0,"_bbp_reply_count_hidden":0,"_bbp_forum_subforum_count":0,"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"yes","rop_publish_now_accounts":[],"rop_publish_now_history":[],"rop_publish_now_status":"pending","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[153],"tags":[],"class_list":["post-15595","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-articles"],"jetpack-related-posts":[{"id":13189,"url":"https:\/\/gnbcc.net\/strong-cedi-easing-inflation-create-room-for-lending-expansion\/","url_meta":{"origin":15595,"position":0},"title":"Strong cedi, easing inflation create room for lending expansion","author":"Tracy Mensah","date":"October 7, 2025","format":false,"excerpt":"With a strong currency and falling inflation, banks have more scope to expand lending, Bank of Ghana Governor Dr. Johnson P. Asiama has said. The cedi has appreciated more than 40 percent against the US dollar so far this year, supported by improved reserves which reached US$11.1billion by end-June \u2013\u2026","rel":"","context":"In &quot;News Articles&quot;","block_context":{"text":"News Articles","link":"https:\/\/gnbcc.net\/category\/news-articles\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2025\/10\/2025-08-15_0_ZGLOBAL2.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2025\/10\/2025-08-15_0_ZGLOBAL2.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2025\/10\/2025-08-15_0_ZGLOBAL2.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2025\/10\/2025-08-15_0_ZGLOBAL2.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":15987,"url":"https:\/\/gnbcc.net\/bog-weighs-policy-realignment-as-inflation-risks-re-emerge\/","url_meta":{"origin":15595,"position":1},"title":"BoG weighs policy realignment as inflation risks re-emerge","author":"Grace Agorigo","date":"May 22, 2026","format":false,"excerpt":"The Bank of Ghana has signalled that it may reassess the country\u2019s interest rate and monetary policy framework as renewed inflation risks from the prolonged Middle East conflict threaten to complicate Ghana\u2019s recent macroeconomic gains. Ghana Economic Reports Opening the 130th Monetary Policy Committee meeting, the governor of the central\u2026","rel":"","context":"In &quot;News Articles&quot;","block_context":{"text":"News Articles","link":"https:\/\/gnbcc.net\/category\/news-articles\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/05\/SNBN-10.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/05\/SNBN-10.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/05\/SNBN-10.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/05\/SNBN-10.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2026\/05\/SNBN-10.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":14440,"url":"https:\/\/gnbcc.net\/central-bank-signals-tougher-scrutiny-of-banks\/","url_meta":{"origin":15595,"position":2},"title":"Central bank 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Articles","link":"https:\/\/gnbcc.net\/category\/news-articles\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2025\/10\/2025-08-29_0_cocobod-logo-748x424-1.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2025\/10\/2025-08-29_0_cocobod-logo-748x424-1.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2025\/10\/2025-08-29_0_cocobod-logo-748x424-1.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/gnbcc.net\/wp-content\/uploads\/2025\/10\/2025-08-29_0_cocobod-logo-748x424-1.png?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":14080,"url":"https:\/\/gnbcc.net\/stage-set-for-multi-year-low-inflation-era-bog-governor\/","url_meta":{"origin":15595,"position":4},"title":"Stage set for multi-year low-inflation era \u2013 BoG Governor","author":"Michael Teye","date":"November 28, 2025","format":false,"excerpt":"The economy is entering what the Bank of Ghana 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