The Bank of Ghana (BoG) has revised its end-of-year inflation target for 2025 to 12percent, down from the earlier projection of 16 percent.
Bank of Ghana Governor Johnson Asiama announced the new target during an interview at the IMF/World Bank Spring Meetings in Washington, D.C. He said the revised goal reflects stronger policy actions by the central bank and support from the government’s fiscal plans.
Asiama said the revised target is based on new monetary measures by the central bank alongside complementary fiscal actions by the government.
“Look at the cedi’s performance, as well as the policy action taken at the last Monetary Policy Committee meeting—that should help tackle food inflation and deliver lower inflation going forward,” he stated.
The governmenor aid further decisions could be taken during the next Monetary Policy Committee (MPC) meeting in May to help achieve the new inflation target.
Ghana’s inflation rate has been falling in recent months, dropped to 22.4 percent in March, down from 23.1 percent a month earlier. This trend has raised hopes that price pressures will continue to ease.
At its last meeting, the MPC raised the policy rate by 100 basis points to 28 percent to contain inflation. Some analysts believe another rate hike could be on the table in May to help achieve the 12 percent target.