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 this assessment in his opening remarks at the 132nd Monetary Policy Committee meeting held at Bank Square on September 23, 2026.
According to Dr. Asiama, 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. He noted that 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. This growth is a positive development for the country, indicating a strengthening economy.
Private-sector credit has also accelerated sharply, although the Governor said the pace of expansion warrants close monitoring. The fiscal position 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.
Dr. Asiama described the new phase 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 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. The Committee will weigh these developments as it considers whether the current monetary policy stance remains appropriate, taking into account both risks and opportunities.
Key points
- Ghana's domestic economic conditions are stable and broadly positive.
- Inflation is below the target band, and economic growth is strengthening.
- The country's debt-distress risk has been reassessed from high to moderate.
