The Bank of Ghana has commenced a comprehensive review of its monetary policy implementation framework.
According to the Governor, Dr. Johnson Asiama, the central bank is transitioning from reliance on the unremunerated Cash Reserve Ratio to a more active Open Market Operations regime, including the use of longer-tenor BoG instruments.
This is intended to enhance policy transmission, improve liquidity management, and allow greater room for credit expansion to the private sector.
Giving remarks ahead of the 3-day Monetary Policy Committee (MPC) meeting, the Governor said the team must carefully assess whether the current monetary policy stance remains adequate to drive disinflation without undermining the fragile growth momentum.
Key questions, he said, include whether the observed exchange rate appreciation is sustainable, how durable is the nascent return of market confidence, and the implications of these dynamics for inflation forecast over the medium term?
“I must also emphasise the critical role of our post-meeting communiqué. It must clearly articulate the rationale behind our policy decisions and provide an accessible, transparent account of recent economic trends. This is essential for anchoring expectations and sustaining public trust in our commitment to price stability”.
He urged the team to approach the meeting with the professionalism, rigour, and independence that the Committee represents.
“Our credibility depends on our ability to respond decisively and proportionately to evolving economic realities. With these remarks, I formally declare the 124th Meeting of the Monetary Policy Committee open”, he concluded.
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