Domestic Macroeconomic Conditions Remain Stable And Broadly Positive -Asiama

Ghana's domestic economic conditions are described as stable and broadly positive by the Bank of Ghana's Governor, Dr Johnson Pandit Asiama. Inflation remains below the Bank's target band, with headline inflation at 5.0 per cent in August. Economic growth has strengthened, with real GDP expanding by 6.0 per cent in the second quarter, driven by the services and ICT sectors.

Private-sector credit growth is accelerating, though the pace warrants monitoring. The fiscal position is stronger than planned, with a primary surplus above target, and public debt stands at 45 per cent of GDP. The country has received upgrades from all three rating agencies, and the debt-distress risk has been reassessed from high to moderate.

The banking sector remains sound, liquid, and profitable. These developments follow Ghana's approval of a 36-month Policy Coordination Instrument with the International Monetary Fund, marking a transition from crisis stabilisation to consolidation phase. The first review of this instrument is scheduled for October, bringing accountability demands.

The Monetary Policy Committee is assessing whether the current policy rate of 14 per cent remains appropriate, given domestic and external developments. While domestic indicators are positive, the Committee will continue to monitor external factors such as global economic uncertainty and its impact on Ghana's economic position.