BoG highlights gains from inflation fight

The Bank of Ghana says its open market operations have helped cut inflation sharply while safeguarding savings and long-term economic stability.

In graphics shared over the weekend, the central bank said low and stable inflation allows “firms and individuals” to predict future costs and prices with greater certainty.

It added that stable prices mean “savings and investments are protected” and that such conditions “improve the overall living conditions in the economy.”

The Bank of Ghana explained that it uses Open Market Operations (OMO) as part of its monetary policy tools to control inflation by “mopping up excess cedis from the economy.”

According to the graphics, this approach prevents “more money chasing fewer goods to spike inflation,” a situation that can erode purchasing power and destabilise markets.

Under the OMO framework, the Bank issues its own bills, which commercial banks purchase. “BoG pays back the principal with interest,” the graphics stated, noting that the intervention comes at a cost. It acknowledged that “this has an explicit monetary cost” and that “mopping up excess liquidity to control inflation costs a lot of money but with long-term benefits to the economy.”

The central bank reported that inflation “dropped from 23.8 per cent in December 2024 to 5.4 per cent in December 2025,” describing the decline as evidence that tight monetary measures are yielding results.

Beyond the recent inflation gains, the Bank has also received recognition for its broader economic management efforts over the past year.

The International Monetary Fund has credited the Bank for helping to stabilise the economy under an IMF-supported programme.

According to the Fund, the Bank played a key role in reversing a severe economic crisis by rebuilding international reserves and supporting the creation of a more resilient financial system.

The central bank has further been acknowledged for strengthening the financial sector through reforms, including banking sector reforms which aimed to restore confidence and improve regulatory oversight.

The latest graphics form part of the Bank’s public education drive to explain its policy decisions and highlight the long-term benefits of maintaining price stability and financial sector reforms.