Economist Professor Patrick Asuming has called on the newly appointed Governor of the Bank of Ghana, Dr. Johnson Asiama, to take a firm stance in managing the country’s monetary policy and resist undue government influence.
He emphasized the need for the Central Bank to avoid excessive money printing to finance fiscal deficits, a practice that has previously contributed to economic instability.
Speaking to Citi Business News, Professor Asuming also stressed the urgency of tackling rising food inflation, warning that inflationary pressures are now deeply rooted in the domestic economy.
“We shouldn’t expect the new governor to have a magic wand to instantly bring inflation down. The current inflation is more entrenched and appears to be driven by production costs rather than excess liquidity, meaning simply raising the policy rate may not be enough,” he explained.
He further called for close collaboration between the Ministry of Finance and the Bank of Ghana to align fiscal and monetary policies effectively.
“I hope he remains strong and firm, especially when dealing with the government, and ensures that the kind of money printing we have seen in the past does not happen again,” he added.
His comments come in response to Ghana’s inflation rate easing to 23.5% in January 2025 after four consecutive months of increases. However, food inflation continues to rise, reaching 28.3% in January from 27.8% in December, while non-food inflation declined from 20.3% to 19.2% over the same period.
