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The Bank of Ghana (BoG) says it is not in a hurry to lower its inflation target despite the recent moderation in price pressures, stressing the need to establish that low inflation can be sustained over time.
Governor of the Bank of Ghana, Dr Johnson Asiama, said the central bank would need greater certainty about the durability of the current inflation trend before considering a revision to its existing target.
Speaking at the 2026 CEOs Connect, Asiama disclosed that some investors had urged the Bank to reconsider its current inflation target of 8%, with a margin of plus or minus two percentage points.
The existing framework places the Bank’s inflation target within a range of 6% to 10%. Some investors have suggested lowering the range 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?” Asiama said.
BoG prioritises sustained price stability
The Governor, however, cautioned against making a premature adjustment to the inflation target, pointing to ongoing global uncertainties that could trigger renewed price pressures.
He specifically cited geopolitical developments, including tensions involving Iran, as factors that could affect global prices and complicate the inflation outlook.
“It may be too early for me to put that rope around my neck,” Asiama said, indicating that the Bank would prefer to observe the inflation trend for longer before making any commitment to a lower target.
Despite the caution, he expressed confidence that inflation could remain subdued over the medium term.
“But we envisage that stable low inflation will continue into the medium term,” he said.
Cedi stability supports economic outlook
Asiama also highlighted the relative stability of the Ghanaian cedi, attributing the improvement to stronger foreign exchange reserves, better government finances and the Bank’s monetary policy measures.
According to him, the improved macroeconomic conditions now create an opportunity for Ghana to focus on translating economic stability into stronger investment and business activity.
He said the next priority should be to attract more investment, support businesses, expand exports and create employment opportunities.
The position reflects the BoG’s cautious approach to monetary policy, inflation management and macroeconomic stability, as the central bank weighs recent improvements against persistent global and domestic risks.
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