Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Kwasi Asiama, has attributed the reduction in inflation to the Central Bank’s sterilisation measures and the cedi’s appreciation.
According to him, the prudent management of the economy, particularly in the monetary sector, is the cause for the achievement.
In an explanatory note on economic development on Wednesday, March 4, 2026, Governor Asiama said “it is because of the sharp appreciation of the cedi and the prudent sterilisation measures that have also helped in delivering this record inflation”.
The sharp decline in the country’s inflation in recent months, and the stability of the cedi, analysts have said, is due to the Bank of Ghana’s competence in handling the sector as inflation remains one of the core mandates of the Bank of Ghana.
The positive indices point to the BoG’s implementation of prudent fiscal and monetary policies to contain price pressures in 2025 and 2026.
In the area of sterilisation however, some analysts believe the BoG’s policy interventions rather came at a high cost to the bank.
Ghana’s inflation rate declined further to 3.3 per cent in February 2026, down from 3.8 per cent in January and a sharp drop from 23.1 per cent recorded in the same month last year.
In its January Monetary Policy Report, the Bank of Ghana projected that inflation would trend toward the lower end of its medium-term target of 8 ± 2 per cent in 2026.
The Central Bank said this projection is based on the combined impact of maintaining an appropriate monetary policy stance, ongoing fiscal consolidation, and adequate reserve buffers.
Economic cost of low inflation and appreciating cedi
Touching on the Gold for Reserve Programme and concerns about its associated costs and recent losses, Dr Asiama said the programme’s fees and charges have been significantly reduced.
According to him, the associated fees and charges under the G4R programme, which previously contributed to the Bank’s losses, have now “reduced by half”.
The Governor added that although inflation has dropped to 3.3 per cent and the cedi has appreciated by more than 40 per cent –the best performance in Ghana’s history –these gains came at a cost.
He explained that “this was delivered at a cost, and as reforms continue, these costs will drop sharply”.
Dr Asiama also said that the losses recorded by the Bank of Ghana in 2024 and any financial position recorded in 2025 must be interpreted within the proper economic context.
Responding to questions about the Bank’s inflation targeting programme, the Gold for Reserve initiative, and the associated costs, the Governor argued that the broader economic benefits should be considered.
He asked what the real benefit to the economy had been over the past year despite the losses posted.
He further questioned whether the policies had led to a sharp appreciation of the cedi and historically low inflation, and what the overall gains had been for Ghanaians.
Monetary Policy Committee Bank of Ghana lowers policy rate to 15.5%
