The Bank of Ghana is reorienting monetary policy toward managing expectations following a year in which inflation eased sharply and financial conditions stabilized, with Governor Doctor Johnson Pandit Asiama emphasizing that policy decisions respond to evidence rather than pressure as the institution aims to lock in credibility and prevent a relapse into instability.
Inflation slowed to 5.4 percent by December 2025 from 23.8 percent a year earlier, reflecting tight monetary conditions, improved liquidity management, and clearer communication, according to the central bank. Asiama stated during the inaugural Governor’s New Year Media Engagement held Friday in Accra that policy decisions are guided by principles rather than short term pressure, stressing the approach remains data driven and forward looking with stability taking precedence over speed.
The governor said the bank deliberately avoided quick fixes that could undermine credibility over time, opting instead for measures that could be sustained even when they proved costly or unpopular in the near term.
“We do not respond to pressure, speculation or sentiment. We respond to evidence, risks and the medium term outlook for price and financial stability,” Asiama said, adding that rebuilding credibility required patience and discipline rather than abrupt policy shifts.
The emphasis on expectation management marks a transition for the Bank of Ghana, which spent much of 2025 containing inflation, restoring order in markets, and rebuilding trust after years of volatility. With headline inflation now close to the 8 percent plus or minus 2 percent target band, the bank’s priority is ensuring households, businesses, and investors believe stability will be maintained over time.
Asiama described 2025 as a year of restoring macroeconomic stability, rebuilding confidence in policy, and reestablishing order across key segments of the financial system. At the macroeconomic level, the bank’s foremost priority was anchoring inflation expectations and restoring stability through disciplined monetary tightening and effective liquidity management.
Beyond inflation, the central bank pointed to progress in strengthening the banking system through regulatory reforms advancing stress testing, recovery planning, and risk based supervision while engagement with lenders and coordination with other regulators intensified. The aim, Asiama said, was moving supervision toward prevention rather than cure.
In financial markets, reforms introduced in 2025 are being consolidated. A rules based foreign exchange auction system, tighter oversight, and improved reporting requirements helped improve price discovery and reduce distortions in the foreign exchange (FX) market. Confidence has gradually returned, supported by a rise in gross international reserves to more than 13.8 billion United States dollars, equivalent to about 5.7 months of import cover, partly due to the Domestic Gold Purchase Programme.
“These programmes involved costs, but they delivered tangible stability benefits and should be understood as strategic interventions in support of macroeconomic and external resilience,” Asiama stated during the engagement attended by leaders from the Ghana Journalists Association, Ghana Independent Broadcasters Association, Private Newspapers and Online News Publishers Association of Ghana, and Institute of Financial and Economic Journalists.
Legislative changes also featured prominently in the stabilization effort. Parliament’s passage of the Bank of Ghana Amendments Bill, 2025 strengthened the central bank’s independence and tightened safeguards around financing government, aligning Ghana’s framework more closely with international practice and reducing risks of crisis driven liquidity injections.
The governor said 2026 would be about consolidation and discipline rather than expansion. Monetary policy will remain measured and predictable, with clear signaling designed to reinforce credibility rather than surprise markets. The objective is not to surprise markets but to reinforce credibility through continuity, he assured.
Supervisory focus will deepen on governance, capital planning, and early risk detection, while financial market reforms will be embedded into routine practice. Consolidation will also be the priority for financial markets this year, with recent reforms to be deepened to support orderly price discovery, disciplined market conduct, and improved confidence across foreign exchange and money markets.
“The emphasis this year is quality over quantity: strong institutions, disciplined markets and policies that endure,” Asiama said. He added that the responsibility now is to protect the hard won stability achieved over the past year and ensure it translates into durable confidence, effective intermediation, and predictable markets.
Touching on payments and digital finance, the governor stressed that attention would focus on resilience and safeguards as usage continued to expand. Oversight will be strengthened to ensure consumer protection, sound governance, and system reliability while innovation proceeds within clear regulatory boundaries.
Asiama announced that 2026 will mark a transition in how national strategic initiatives are anchored. Programmes introduced during the period of adjustment, including those related to gold, will move toward more sustainable institutional and fiscal arrangements, ensuring shared responsibility and long term viability rather than emergency measures.
The governor emphasized the crucial role of media in promoting transparency in economic governance, describing a free, independent, and responsible press as a cornerstone of democracy. He noted that although monetary and financial policy issues were often complex, journalists played a vital role in simplifying and clarifying such matters for the public.
Asiama announced the introduction of an internal recognition initiative dubbed the Governor’s Economic and Financial Story of the Year, designed to promote accurate, insightful, and innovative reporting across traditional and digital platforms throughout 2026. The award aims to encourage quality economic and financial journalism.
Sandra Asante Asiedu, Second Deputy Governor responsible for operations, reaffirmed the Bank of Ghana’s commitment to promoting quality economic and financial journalism through the new award. She emphasized that accurate reporting of monetary and financial policy decisions could influence expectations, confidence, and behavior across the economy.
Abdul Nashiru Issahaku, Second Deputy Governor responsible for banking and payment systems supervision, urged journalists to be circumspect in their reporting to safeguard financial market stability, noting that media narratives significantly influence public sentiment and economic behavior.
“In this environment, the media is not merely an observer of economic events; you are a transmitter of confidence, a shaper of sentiment, and often unknowingly, a participant in market dynamics,” Issahaku said, emphasizing the weight of economic journalism in shaping market outcomes.
The central bank’s focus on expectation management reflects lessons from advanced economies where communication policy serves as a powerful monetary tool alongside interest rates and reserve requirements. Clear forward guidance helps anchor inflation expectations, reducing volatility and allowing policy to work through anticipation effects rather than only through actual interest rate movements.
Ghana’s experience in 2025 demonstrated how rapidly inflation can fall once credibility is established and expectations shift. The decline from 23.8 percent to 5.4 percent within twelve months exceeded most forecasts and reflected not only tight policy but also changing beliefs about the central bank’s commitment to price stability.
Asiama highlighted progress made in capital market development in 2025, particularly ongoing discussions around encouraging bank listings. Working with market regulators and stakeholders, the bank supported efforts to enhance the use of public markets to strengthen governance, transparency, and market discipline within the financial sector.
The governor reiterated that the bank prioritized stability over speed, adopting policies that were sustainable even when difficult in the short term. He added that the central bank functioned as an institution guided by established frameworks and collective decision making informed by rigorous analysis rather than individual preferences.
“Our expectation as a central bank is not mere compliance but responsibility: accuracy, balance, and context,” Asiama stated, addressing assembled journalists and emphasizing the partnership between monetary authorities and media in sustaining stability through informed public discourse.
Albert Kwabena Dwumfour, President of the Ghana Journalists Association, commended the Bank of Ghana and its governor for restoring fiscal discipline and achieving historic single digit inflation while also stabilizing the cedi against the dollar. He described the engagement as timely and important for fostering mutual understanding.
The principles that guided the bank’s actions in 2025 will continue to guide operations in the year ahead, Asiama emphasized. These include responding to evidence rather than pressure, prioritizing medium term stability over short term popularity, and maintaining transparent communication about policy objectives and economic conditions.
The annual interaction with media has become an important tradition for the bank, offering an opportunity to reflect on the year just ended and situate its work within the broader national conversation. Asiama described the engagement as recognition that central banking operates not in isolation but as part of a democratic society requiring accountability and explanation.
The governor noted that 2025 was a difficult year requiring tough judgments, careful sequencing of policy actions, and sustained discipline across institutions. The bank operated as an institution, not as individuals, with decisions taken through established frameworks informed by analysis, debate, and professional judgment.
Looking ahead, the bank’s strategic priorities for 2026 include maintaining price stability within the target band, deepening financial sector reforms to enhance resilience and efficiency, strengthening supervision to prevent emerging risks from materializing, consolidating foreign exchange market reforms to sustain orderly functioning, and transitioning temporary programmes to sustainable institutional arrangements.
The shift toward expectation management represents maturation in Ghana’s monetary policy framework. Rather than constantly reacting to shocks and defending credibility after crises, the bank aims to maintain credibility proactively through consistency, transparency, and adherence to stated objectives regardless of political or economic pressures.
Success in managing expectations requires not only technical competence but also communication skills and institutional independence. The recent legislative amendments strengthening the Bank of Ghana’s autonomy provide legal backing for policy continuity across political cycles, addressing a longstanding weakness in Ghana’s economic governance.
Asiama’s emphasis on principles over pressure reflects international best practices where central bank independence means resisting short term demands for easier policy in favor of medium term stability objectives. Credible independence allows monetary policy to anchor expectations more effectively than frequent interventions or surprise policy shifts.
The consolidation phase beginning in 2026 will test whether Ghana’s improved macroeconomic performance represents a durable shift or a temporary respite before renewed instability. The central bank’s approach, prioritizing expectation management and institutional strengthening over dramatic policy moves, suggests confidence that foundations are now solid enough to sustain stability through ordinary times rather than requiring constant emergency interventions.
