Minister of Finance, Dr Cassiel Ato Forson has expressed confidence that Ghana's inflation will remain under control despite a recent uptick, insisting that the responsibility for managing inflation and stabilising the cedi cannot rest solely with the Bank of Ghana.
Speaking on JoyNews on Thursday, July 23, 2026, a day after presenting the 2026 Mid-Year Budget Review in Parliament, Dr Forson said effective inflation management requires close coordination between fiscal and monetary authorities.
He argued that inflation driven by supply-side factors, such as food and fuel prices, cannot be addressed through monetary policy alone.
“The Bank of Ghana alone cannot anchor the currency. It is also the role of the fiscal authorities,” he said.
GoldBod raked in additional $15bn in foreign exchange inflows - Ato Forson
The Finance Minister explained that when inflation is fuelled by rising food prices, government policy interventions are often more effective than repeated increases in interest rates.
“If today inflation is coming on the back of food inflation, what can the central bank do? It is government policy that we have to employ to deal with food inflation,” he said.
He added that similar interventions are required when fuel prices increase, noting that government measures can help cushion the impact on consumers and inflation.
“If fuel prices are going up, government will be the one that has to act, not always the central bank,” he noted.
Citing previous government action, Dr Forson recalled the introduction of temporary relief measures to reduce fuel prices and contain inflationary pressures.
“We introduced temporary relief to bring the price of fuel down so that inflation does not hit the roof. It was not only the responsibility of the central bank,” he said.
According to the minister, the amendment of the Bank of Ghana Act has made inflation targeting a shared responsibility between the Ministry of Finance and the central bank.
“For the first time, we amended the Bank of Ghana Act to make inflation targeting a joint responsibility between the Ministry of Finance and the central bank,” he said.
He explained that the framework ensures both institutions understand their respective roles in achieving the country's inflation target.
“The coordination between the monetary authorities and fiscal authorities means we can work together to tame inflation,” he said.
Addressing concerns over the recent increase in inflation, Dr Forson said he remained optimistic that inflation would stay within the Bank of Ghana's target range of 8 percent, plus or minus 2 percentage points.
He reiterated that the official target range remains between 6 and 10 percent and expressed hope that inflation would end the year at about 5.5 percent.
“It is my hope that we will end the year with inflation at 5.5 percent,” he said.
The minister's comments come amid renewed attention on inflation after recent data showed a slight upward trend, although he maintained that the broader outlook remains positive.
ANAS/MA
Ghana's recovery due to superior economic management - Ato Forson
Copyright © 1994 - 2026 GhanaWeb. All rights reserved.
