BoG credits tough 2025 choices for restored macro stability

Bank of Ghana Governor Dr Johnson Pandit Asiama says difficult policy decisions in 2025 were necessary to restore macroeconomic stability and rebuild confidence.

Dr Asiama told editors and senior journalists in Accra that the central bank deliberately prioritised discipline over speed, arguing that “quick fixes are rarely durable when credibility has been damaged.”

“The year demanded difficult judgments and sustained restraint,” he said. “But those choices were essential to restore order and rebuild confidence in our policy framework.”

He explained that the Bank’s focus throughout 2025 was anchoring inflation expectations and stabilising markets, even when the short-term impact on households and businesses was uncomfortable. According to him, the results justified the approach.

“Inflation declined steadily from 23.8 percent at the end of 2024 to 5.4 percent by December 2025,” Dr Asiama said. “That outcome reflects consistency, discipline and a refusal to respond to pressure or sentiment.”

He stressed that policy decisions at the Bank of Ghana are driven by data and medium-term risks, not public commentary or political considerations. “We respond to evidence, not speculation,” he noted.

On the financial sector, the Governor said regulatory reforms introduced last year strengthened resilience and improved supervisory effectiveness.

He cited enhanced stress testing, stronger recovery planning, and refinements to risk-based supervision as key interventions.

“These reforms were about prevention, not rescue,” Dr Asiama said. “Our goal is to identify vulnerabilities early and address them before they threaten stability.”

He also pointed to reforms in the foreign exchange market, including the introduction of a rules-based FX auction system and tighter market oversight, which he said improved transparency and price discovery.

“In 2025, we moved decisively to restore order in the FX market,” he said. “Confidence does not return by chance; it returns through clear rules and consistent enforcement.”

Dr Asiama said the Domestic Gold Purchase Programme also helped strengthen external buffers, pushing gross international reserves above US$13.8 billion, equivalent to about 5.7 months of import cover.

Looking ahead, he said 2026 would focus on consolidation rather than expansion.

“Stability has been restored, but it must now be protected,” he stated. “This is a period for discipline, not complacency.”

The Governor also urged the media to exercise responsibility in economic reporting, noting that “economic information carries weight and shapes expectations.”

“Our commitment is openness and engagement,” he added. “But accuracy, balance and context are essential to safeguarding the gains we have made.”