BoG Governor rules out immediate cut in Ghana’s inflation target

Dr Johnson Asiama, Governor of the Bank of Ghana (BoG), has stated that the central bank's inflation target is unlikely to be immediately reduced, stressing that the recent improvement in price stability may be premature. This comes after macroeconomic conditions have improved, with inflation falling below the lower limit of the bank's target range and the cedi showing renewed strength.

Speaking at the 2026 CEOs Connect event organized by the Canada Ghana Chamber of Commerce, Asiama acknowledged that investors have questioned why the Bank has not lowered its current 8% inflation target, which allows for a 2 percentage point range above or below the target. Some investors believe Ghana could maintain a lower inflation level and suggested reducing the target band from the current 6–10% to around 4–6%.

However, Asiama cautioned that the bank remains cautious about changing the benchmark due to ongoing geopolitical and external risks, such as the crisis in Iran. Despite his caution, Asiama expressed confidence that Ghana can maintain the recent gains in price stability in the medium term. The immediate priority for the Bank, he said, is to consolidate the country's macroeconomic gains, rather than changing the inflation benchmark prematurely.

Asiama attributed the cedi's recent resilience to stronger foreign exchange reserves, improved fiscal discipline, and a well-calibrated monetary policy. The broader objective now is to translate the gains in macroeconomic stability into stronger investment, private-sector growth, increased exports, and the creation of quality jobs.