BoG Governor, Dr Johnson Pandit Kwasi Asiama
The Monetary Policy Committee (MPC) of the Bank of Ghana has reported significant improvements in Ghana’s macroeconomic indicators, including inflation and gross international reserves.
This follows an emergency meeting held on Thursday, July 17, 2025, to assess whether current economic conditions warranted immediate action ahead of the scheduled 125th MPC meetings later this month.
In a statement issued on July 18, 2025 the Bank of Ghana noted, “This is in line with our commitment to proactive and responsive policy formulation.”
The Committee highlighted the following developments over the past three months: “A strengthening of the disinflation momentum, with headline inflation falling steadily for six consecutive months to 13.7% in June 2025, down from 23.8% in December 2024.”
It added that core inflation measures also indicate a re-anchoring of expectations, supporting the further decline in inflation.
The Committee further noted that real sector performance remains robust, with real GDP growth reaching 5.3% in the first quarter of 2025. Non-oil GDP growth was even stronger, at 6.8%, driven by vibrant activity in the agriculture and services sectors.
In addition, the external sector has continued to strengthen, with a provisional trade surplus of US$5.6 billion and a current account surplus of US$3.4 billion recorded in the first half of 2025. These figures compare favorably to US$1.4 billion and US$283.1 million, respectively, in the same period of 2024.
“These gains have contributed to higher reserve accumulation,” the statement added.
Additionally, the Central Bank noted that;
1. Gross international reserves improved to US$11.1 billion as at end-June 2025, equivalent to 4.8 months of import cover, from US$8.98 billion at end-2024.
2. The cedi has appreciated significantly, gaining 42.6 percent, year-to-date, against the US dollar, supported by strong foreign exchange inflows from gold and cocoa exports, remittances, improved investor sentiments, and prudent policy implementation.
3. The global environment remains uncertain. Growth momentum is weakening and is projected to slow to 2.8 per cent in 2025, from 3.3 per cent in 2024. Global financial conditions remain tight, and disinflation, though ongoing, is expected to proceed unevenly.
“Overall, the Committee noted significant improvements in the current macroeconomic conditions and the positive outlook. Inflation expectations are broadly anchored, external buffers have strengthened, and confidence in the economy is returning. The Committee reaffirmed its commitment to support the recovery process without compromising the gains achieved so far,” BoG noted.
However, the next regular MPC meeting will be held from Monday, July 28, 2025, and conclude on Wednesday, July 30, 2025, with announcement of the policy decision, as scheduled.
SSD/MA
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