Governor of the Bank of Ghana, Dr. Ernest Addison, has indicated that Ghana’s economy is performing exceptionally well.
He noted that all macroeconomic indicators are moving in the right direction.
During the 120th Monetary Policy Committee (MPC) press conference in Accra on Friday, September 27, he stated, “This economy is doing very well. Looking at the exchange rate, from 2017 to 2022, the Cedi appreciated from 4 to 6 Cedis.
The issue we encountered was primarily in 2022, when it jumped from 6 to 15, but we are on the path to recovery. I am quite pleased with the MPC and the work we have accomplished.”
He explained that, based on the Committee’s assessment, preliminary data since the last MPC meeting in July 2024 indicates that macroeconomic conditions have generally improved.
Headline inflation has decreased, and economic growth has increased. The implementation of fiscal policy has been strong, providing support for growth, while monetary conditions have remained tight and conducive to the disinflation process.
Headline inflation has fallen for five consecutive months since the first quarter, decreasing by 5.4 percentage points. Core inflation has also significantly dropped during the same period, declining by 6.9 percentage points.
These trends indicate that the disinflation process is progressing well. Current forecasts suggest that inflation will continue to decrease, approaching the target range of 13-17 percent for the year and gradually aligning with the medium-term goal of 6-10 percent by the end of 2025, barring any unexpected shocks.
At this point, the Committee considers the risks to the inflation outlook to be relatively balanced.
“Given these considerations, the Committee decided to lower the Monetary Policy Rate by 200 basis points to 27.0 percent,” he said.
