The Bank of Ghana aims to bring inflation down to 12% by the end of 2025. Governor Dr. Johnson Asiama shared this new goal during the IMF/World Bank Spring Meetings in Washington.
He explained that the revised target follows new monetary measures from the Central Bank and fiscal steps from the government. “Consider the recent cedi trends and our policy decisions at the last MPC meeting. These actions should help reduce food inflation and ease overall price pressures,” Dr. Asiama told JoyBusiness.The next Monetary Policy Committee (MPC) meeting will take place on May 22, 2025.
Dr. Asiama promised strong action, saying, “The Bank of Ghana will respond based on the data available.”The new 12% goal represents a sharp shift from the earlier 16% forecast for 2025. Achieving it could deliver Ghana’s lowest inflation rate in four years.Inflation has already started to ease.
It dropped to 22.4% in March 2025, down from 23.1% in February. This marks the third straight month of decline, building hope for continued improvement.To fight inflation, the MPC recently increased the policy rate by 100 basis points to 28%. Analysts expect another hike in May to keep inflation under control.
The International Monetary Fund (IMF) also supports tighter monetary policies. In a recent statement after its staff-level agreement with Ghana, the IMF said: “Tighter monetary policy and ongoing fiscal consolidation should help bring inflation down.”
Despite the Central Bank’s efforts, the IMF forecasts a year-end inflation rate of 17.5% for Ghana in 2025. That contrasts with the 11.9% target set by Finance Minister Dr. Ato Forson in the 2025 Budget.
Looking ahead, the IMF predicts that inflation could fall further to 9.4% by the end of 2026. This would push Ghana closer to single-digit inflation for the first time in years.Dr. Forson remains optimistic about the government’s plan.
In the 2025 Budget, he announced a target of 11.9% inflation as part of efforts to restore economic stability.
However, some economists remain cautious. Professor Peter Quartey described the government’s target as ambitious.
He believes Ghana’s current economic difficulties may prevent such a sharp drop in inflation.
