BoG won't rush to lower inflation target - Dr Asiama

The Bank of Ghana (BoG) says it will not rush to lower its inflation target despite the recent decline in inflation.

Governor of the Bank of Ghana, Dr Johnson Asiama, said the Bank wants to be certain that low inflation can be sustained before considering a lower target.

Speaking at the 2026 CEOs Connect, Dr Asiama said some investors had asked the Bank to reduce its current inflation target of 8%, with a margin of plus or minus 2 percentage points.

This means the Bank currently aims to keep inflation within a range of 6% to 10%. Some investors believe the target could be lowered to between 4% and 6%.

“I was in a meeting with some investors the other day and they were asking, why don’t we lower our inflation band?” Dr Asiama said.

However, he said global uncertainties, including tensions involving Iran, could affect prices and make it risky to lower the target at this time.

“It may be too early for me to put that rope around my neck,” he stated.

Despite the risks, Dr Asiama said he expects inflation to remain low and stable in the coming months.

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“But we envisage that stable low inflation will continue into the medium term,” he said.

The Governor also said the cedi has remained relatively stable on the back of stronger foreign exchange reserves, improved government finances and the Bank’s monetary policy measures.

He said the next challenge was to use the improved economic conditions to attract investment, support businesses, increase exports and create more jobs.

DR/MA

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