Bank of Ghana (BoG) Governor Dr Johnson Pandit Asiama has given the most candid public account yet of the financial cost behind Ghana’s dramatic inflation turnaround, telling business leaders at the Kwahu Business Forum that last year’s gains were real but came at a steep price to the central bank.
Speaking at the Governor’s Roundtable, which served as the closing session of the 2026 Kwahu Business Forum, Dr Asiama pointed to Ghana’s improved macroeconomic performance in 2025 and highlighted the stability of the Ghana cedi, saying “the cedi is stable and under control.”
But he was direct about what it took to get there. “Last year was good but expensive for the central bank. It took us a lot of money to mop up excess liquidity and bring inflation down,” he told participants, noting that tight monetary policy reduced inflation from 23.8 percent in December 2024 to 5.4 percent by end-2025. Inflation has since fallen further to 3.2 percent.
The process involved large-scale liquidity sterilisation the absorption of excess money from the financial system which carries significant interest costs and balance sheet implications for the central bank.
Looking ahead, Dr Asiama expressed confidence that the heavy lifting is largely behind them. “If you look at where inflation was at the end of December 2024 and where it is now, it wouldn’t involve the same level of resources to keep it low and stable going forward,” he said, suggesting the foundation laid in 2025 will allow for more sustainable monetary management without the same level of costly intervention.
On the path to credit expansion, he linked financial sector strength directly to economic growth. “When banks are strong, they can give more credit,” he said, stressing that the central bank’s ultimate aim is to create conditions for the private sector to expand.
Throughout his remarks, Dr Asiama returned to the core tension that defines central banking. “The work we do is always about trade-offs… trying to strike the right balance,” he said, acknowledging that inflation control and growth-supportive conditions do not always move in the same direction.
The roundtable brought together Chief of Staff Julius Debrah, Minister Rita Akosua Adjei Awatey, former Finance Minister Seth Terkper, and businesswoman Marietta Agyeiwaa Brew, alongside investors and development partners.
