Domestic Macroeconomic Conditions Remain Stable And Broadly Positive -Asiama

Ghana’s domestic economic conditions remain stable and broadly positive, with inflation below the Bank of Ghana’s target band, economic growth strengthening and the country’s fiscal and debt positions showing improvement.

Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, made the assessment in his opening remarks at the 132nd Monetary Policy Committee meeting held at Bank Square on September 23, 2026. “Domestic macroeconomic conditions remain stable and broadly positive,” Dr Asiama said.

He noted that headline inflation stood at 5.0 per cent in August, which is below the lower bound of the Bank of Ghana’s 8±2 per cent target band.

According to him, domestic cost pressures in housing, transport and services persist, but exchange-rate stability has helped contain imported inflation, while inflation expectations have eased across all surveyed groups.

The Governor also reported stronger economic growth, with real Gross Domestic Product expanding by 6.0 per cent in the second quarter. He said the growth was led by the services and Information and Communications Technology sectors.“Real GDP grew by 6.0 per cent in the second quarter, led by services and ICT,” he stated.

Private-sector credit has also accelerated sharply, although the Governor said the pace of expansion warrants close monitoring. The fiscal position, he noted, is also stronger than programmed, with the primary surplus above target.

Public debt currently stands at 45 per cent of GDP, while Ghana has received upgrades from all three rating agencies. The Governor further disclosed that the country’s debt-distress risk had been reassessed from high to moderate.The banking sector, he said, remains “sound, liquid and profitable,” adding to the positive developments in the domestic economy.

These developments come as Ghana enters a new phase of engagement with the International Monetary Fund following the approval of the country’s 36-month Policy Coordination Instrument by the IMF Executive Board on July 27, 2026.

Dr Asiama described the PCI as marking Ghana’s transition “from crisis stabilisation to the consolidation phase.” He said the new phase would place attention on the credibility of monetary and fiscal policy, particularly as markets and the international community assess Ghana’s policy ownership.

“The markets will watch the behaviour of monetary and fiscal policy for credibility,” he said. The Governor also noted that the first PCI review is scheduled for October, bringing with it “attendant accountability demands.”

On monetary policy, Dr Asiama said the key question before the Committee was whether the current policy rate of 14 per cent remained the appropriate anchor for inflation expectations, given the balance of domestic and external developments.

At its July meeting, the Monetary Policy Committee unanimously maintained the policy rate at 14.0 per cent. The Committee had judged that the rate remained appropriate to guide inflation back into the target band while allowing time to assess the effects of previous policy decisions, including the revision to the cash reserve ratio regime.

Dr Asiama said the transmission of those measures was still ongoing, with banks reallocating resources. While the Governor highlighted the positive domestic indicators, he also said the Committee would continue to assess developments in the external position.

Gross international reserves stood at US$11.07 billion, equivalent to 4.2 months of import cover, while the current account was projected to record a deficit in the third quarter. He said the domestic position afforded policy space, but added that the external position would determine how much of that space could safely be used.

“Rebuilding net foreign assets must therefore remain the priority heading into the fourth quarter,” he said.

The Governor also pointed to the continued uncertainty in the global economy, particularly developments surrounding the Middle East crisis, oil prices and global financial conditions. Despite those external developments, he said Ghana’s economic position contained both risks and opportunities.

Higher gold prices, for instance, provide support for export earnings, reserve accumulation and government revenue, while higher energy and fertiliser import costs could affect transport, production costs and consumer prices.

The Monetary Policy Committee is, therefore, expected to weigh these developments as it considers whether the current monetary policy stance remains appropriate.

For now, Dr Asiama said the Committee’s deliberations would focus on assessing the balance of risks and determining whether the current 14 per cent policy rate remained appropriate.

He expressed confidence that the staff presentations and Committee deliberations would provide the necessary analysis to address the issues before the meeting.

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