The Bank of Ghana has begun a comprehensive review of its monetary policy implementation framework.
Governor Dr. Johnson Asiama explained that the central bank is shifting away from reliance on the unremunerated Cash Reserve Ratio (CRR) towards a more active Open Market Operations (OMO) regime, including the introduction of longer-tenor BoG instruments.
This shift aims to enhance policy transmission, improve liquidity management, and create greater room for credit expansion to the private sector.
Speaking ahead of the three-day Monetary Policy Committee (MPC) meeting, the Governor highlighted the need for the committee to carefully assess whether the current monetary policy stance remains adequate to drive disinflation without undermining the fragile growth momentum.
Key considerations, he said, include whether the observed exchange rate appreciation is sustainable, how durable the nascent return of market confidence is, and the implications of these dynamics for medium-term inflation forecasts.
“I must also emphasise the critical role of our post-meeting communiqué. It must clearly articulate the rationale behind our policy decisions and provide an accessible, transparent account of recent economic trends. This is essential for anchoring expectations and sustaining public trust in our commitment to price stability,” he stated.
He urged the committee members to approach the meeting with professionalism, rigour, and independence, noting, “Our credibility depends on our ability to respond decisively and proportionately to evolving economic realities.”
With these remarks, Dr. Asiama formally declared the 124th meeting of the Monetary Policy Committee open.