Ghana cut inflation to 5.4% at high cost

Ghana’s central bank spent a lot of money in 2025 to lower inflation. Governor Dr Johnson Pandit Asiama said the Bank of Ghana incurred high costs to cut inflation from 23.8% in December 2024 to 5.4% by end-2025.

The Bank used tight money policies. This meant taking extra money out of the economy. These actions cost the bank a lot of money. The Governor explained this at a business meeting. He said keeping prices stable means making tough choices.

A good result was that the Cedi became stable. Dr Asiama said the local currency is now under control. He believes keeping inflation low will cost less in 2026. This is because Ghana’s economy is improving.

Dr Asiama noted that other central banks also face high costs when fighting inflation. He said controlling inflation is very important. It helps protect people’s incomes. It also keeps the economy stable.

He also talked about the need for strong banks. He said strong banks can lend more money to businesses. This helps the economy grow. The Bank of Ghana will keep working to keep inflation low and help the economy grow.