Inflation fight delivered, vigilance continues – Johnson Asiama

Bank of Ghana Governor Dr Johnson Pandit Asiama says the inflation battle was won in 2025, but cautions that sustained discipline remains critical to protect stability.

Addressing editors and senior journalists, Dr Asiama said inflation fell sharply because the central bank resisted pressure for shortcuts and stayed focused on evidence-based policy choices.

“The inflation fight has delivered results,” he said. “But stability is fragile, and vigilance must continue if confidence is to endure.”

He noted that inflation declined from 23.8 percent in December 2024 to 5.4 percent by the end of 2025, describing the outcome as a product of consistency rather than luck.

“These outcomes reflected discipline in policy execution and a deliberate focus on restoring credibility,” Dr Asiama said. “We chose stability over speed because quick fixes are rarely durable.”

According to the Governor, monetary policy decisions throughout the year were guided by data and forward-looking risk assessments, not public pressure or sentiment.

“We do not respond to speculation,” he stressed. “We respond to evidence, risks, and the medium-term outlook for price and financial stability.”

Dr Asiama said the Bank’s approach extended beyond inflation to restoring order across financial markets.

He pointed to reforms in the foreign exchange market, including a rules-based auction system and stronger oversight, which he said improved transparency and confidence.

“Order in the FX market does not happen by accident,” he said. “It requires clear rules, enforcement, and consistency over time.”

He also highlighted progress in the banking sector, where regulatory reforms strengthened supervision and resilience through enhanced stress testing and recovery planning.

“Our focus has shifted toward prevention rather than cure,” Dr Asiama said. “The objective is to address vulnerabilities early, before they threaten stability.”

On Ghana’s external position, the Governor said the Domestic Gold Purchase Programme helped ease foreign exchange pressures and rebuild buffers, lifting gross international reserves above US$13.8 billion.

Looking ahead, Dr Asiama said 2026 would be about consolidation, not policy experimentation.

“Stability has been restored, but it must now be protected,” he said. “This is a period for discipline, continuity and credibility.”

He urged the media to support the effort through accurate and balanced economic reporting, warning that poorly contextualised information could undermine confidence.

“Economic information carries weight,” Dr Asiama added. “Responsible reporting helps safeguard the gains we have worked hard to achieve.”